Pakistan borrows $714.74m in first two months of FY2024-25

ISLAMABAD: Pakistan borrowed $714.74 million from various financing sources, including multilateral and bilateral institutions and Naya Pakistan Certificate, during the first two months of the fiscal year 2024-25. This marks a significant decline from the $3.206 billion borrowed in the same period of the previous fiscal year.

Interestingly, in Naya Pakistan Certificates, inflows increased by 84 percent during July-August 2024-25 to $259.04 million against $140.82 million in the same period of the last fiscal, revealed the Economic Affairs Division (EAD) data.

Besides, Pakistan secured $292.99 million from multilateral sources and $162.70 million from bilateral sources.

Notably, the government had budgeted for $9 billion in time deposits, which included a $5 billion deposit from Saudi Arabia and a $4 billion deposit from SAFE China for the current fiscal year. However, no funds were received under this category. The report also noted a lack of assistance from the United Arab Emirates.

For fiscal year 2024-25, the government had anticipated raising $19.393 billion from multiple financing sources, consisting of $19.216 billion in loans and $176.29 million in grants. Notably, this budget did not account for any funds from the International Monetary Fund (IMF).

Likewise, the government had projected $3.779 billion from foreign commercial banks for the fiscal year, but again, no funds were received in the first two months. Additionally, the budget included $1 billion from bonds, but since no bonds were issued, this source also yielded no funds during the same period.

Non-project aid amounted to $273.12 million, including $14.07 million for budgetary support, while project aid totaled $441.62 million.

The Asian Development Bank (ADB) disbursed $96.20 million during this period, against a budgeted amount of $1.651 billion for the entire fiscal year. The International Development Association (IDA) provided $147.86 million against a budgeted $1.525 billion, while the International Bank for Reconstruction and Development (IBRD) disbursed $28.88 million compared to a budgeted $550.22 million.

Notably, the Islamic Development Bank (IsDB) did not disburse any funds in July-August, despite a budget estimate of $500 million for the fiscal year, while the Asian Infrastructure Investment Bank (AIIB) and International Fund for Agricultural Development (IFAD) disbursed $8.73 million and $9.59 million, respectively, against budgeted amounts of $41.39 million and $40.45 million respectively for the fiscal year.

China contributed $96.76 million in July but did not disburse any funds in August, despite a budget estimate of $134.18 million for the fiscal year.

Meanwhile, Saudi Arabia provided $2.69 million in the first month of the fiscal year, against a total budget estimate of $146.54 million, with no funds received in August. The United States disbursed $30.94 million during the first two months, exceeding the budgeted amount of $20.87 million for the fiscal year.