ISLAMABAD – The government received external loans of $2.961 billion,including $1.049 billion from foreign commercial banks i.e. around 35percent, in the first five months (July-Nov) of the fiscal year 2019-20.
Pakistan had received $1.860 billion external loans, including $450 millionfrom foreign commercial banks, during the same period last year. This wasrevealed by the Economic Affairs Division (EAD).
The government budgeted foreign assistance of $12.957 billion for thecurrent fiscal year, including $2 billion foreign commercial loans. Thecountry received $1.149 billion from multilaterals (excluding the firsttranch release from the IMF) and $489.29 million bilaterally duringJuly-November 2019-20. Another $273.45 million was received under SaudiArabia’s short term loan (Saudi oil facility) in the current fiscal year,out of a total of $3.2 billion.
Dubai Bank disbursed $197.99 million and Ajman Bank loaned $66.69 millionin November. Pakistan received $88.92 million from Ajman Bank and $155million from the consortium-led by Suisse AG, UBL, and ABL in October.Dubai Bank disbursed $193.05 million in September while Citibank disbursed$148.2 million in August. The government also borrowed $123.31 million fromDubai Bank and $50 million from a consortium of Credit Suisse in July.
China disbursed $2.91 million in November, bringing the total to $298.14million for the fiscal year 2019-20. The amount was loaned for theconstruction of cross border optical fiber in November. Earlier, $133.02million was released for the Havelian-Thakot road project, $140.16 millionfor the Sukkur-Multan motorway, $13.86 million for the Orange Line Metroproject and $8.20 for Neelum Jehlum Hydropower project.
The Islamic Development Bank disbursed $351.61 million in the currentfiscal year so far out of the total of $1.1 billion budgeted for thecurrent fiscal year.
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Asian Development Bank (ADB) disbursed $606.72 million, United Kingdom (UK)$113.14 million, IDA $107.88 million, IBRD $27.85 million, InternationalFund for Agricultural Development (IFAD) $27.04 million, USA $31.88 millionand Japan $21.25 million in the first five months of current fiscal year.$80 Million Loan Deal Signed With EXIM Bank of Korea
The government of Pakistan and EXIM Bank of Korea have signed a loanagreement worth $80 million for energy sector reforms. Minister forEconomic Affairs Muhammad Hammad Azhar attended the signing ceremony of theloan agreement.
The loan agreement was signed by Secretary EAD Pervaiz Abbas and Director(Asia Region) Yang Dongcheol of EXIM Bank Korea.
This program aims to address the fiscal, governance, technical and policydeficits in Pakistan’s energy sector, which will help bring economicsustainability and fiscal balance. It will support the new national energypolicy and integrated energy plan being formulated by the currentgovernment.
