*ISLAMABAD -* Foreign loan disbursements stood at only $1.7 billion infirst five months of the current fiscal year that may underminegovernment’s efforts to take pressure off its foreign currency reserves.
The $1.72-billion loan disbursements from July through November were equalto only 18% of the original annual estimates, finance ministry officialstold The Express Tribune on Monday.
The $2-billion loan that Pakistan got from Saudi Arabia to bolster thedwindling reserves is not part of these disbursements. The Saudi assistancehas been shown on books of the central bank.
The official gross foreign currency reserves held by the State Bank ofPakistan (SBP) stood at $8 billion on the back of the Saudi loan thatPakistan has obtained at an interest rate of 3.18%.
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The disbursements in the July-November period from international creditorswere down $1 billion or 37% when compared with the loans received in thesame period of previous fiscal year. From July through November 2017,Pakistan had received $2.7 billion in loans.
