Govt secures $1.72bn in foreign loans in four months

EAD data shows Pakistan received $259m from bilateral creditors during first four months of fiscal year

By Mehtab Haider
November 27, 2024
A person holds a stack of dollars. — AFP/File
A person holds a stack of dollars. — AFP/File

ISLAMABAD: The government has secured $1.72 billion in foreign loans from multilateral and bilateral creditors during the first four months (July-October) of the current fiscal year, despite the absence of international bond issuances or deposit rollovers so far.

Including the $1 billion tranche disbursed by the International Monetary Fund (IMF) under the $7 billion Extended Fund Facility (EFF), the total foreign loans for the period amount to $2.72 billion. However, the Economic Affairs Division (EAD) did not show the IMF loan in its data, as it supports the balance of payments (BoP) and is recorded on the State Bank of Pakistan’s balance sheet. By comparison, Pakistan received $4.25 billion in foreign loans during the same period last fiscal year (2023–24).

For the current fiscal year, Islamabad has projected $19.39 billion in foreign loans from multilateral and bilateral creditors. This includes $9 billion in foreign deposits — $5 billion from Saudi Arabia and $4 billion from China — as well as $1 billion from an international bond issuance.

According to data from the EAD, Pakistan received $259 million from bilateral creditors during the first four months of the fiscal year. Key contributions include China $97.58 million, France $89.64 million, Germany $11.29 million, Japan $9.71 million, Korea $7.59 million, Saudi Arabia $6.35 million and the US $37.32 million.

Multilateral creditors disbursed $721 million during the same period. Significant contributors include the Asian Development Bank (ADB) $173.05 million, the Asian Infrastructure Investment Bank (AIIB) $17.41 million, the World Bank (WB) $266.64 million under IDA (concessional loans) and $97.19 million under IBRD, Islamic Development Bank (IsDB) $100 million (short-term loan) and $50.41 million, IFAD $15.56 million, OPEC Fund $0.75 million.

In addition, the government secured $200 million through commercial loans and $547 million through the Naya Pakistan Certificates during the first four months of the current fiscal year.