Short-term borrowing generates $3.663b

ISLAMABAD: In the wake of rising financing requirement and avoiding depletion of foreign currency reserves, Pakistan’s reliance on short-term borrowings and launching of international bonds have generated $3.663 billion out of total $5.895 billion disbursements made by all creditors in first six months (July-Dec) period of the current fiscal year.

Now the short-term borrowing will continue in remaining second half (Jan-June) period of the current fiscal year and it is expected to get another $1 to $1.5 billion through this mode of external loans from international commercial banks, official sources confirmed to The News here on Monday.

Despite making tall claims by US President Donald Trump through tweet for providing billions of dollars to Pakistan, the country’s official data shows that Washington has disbursed only $30.85 million for Pakistan in first six months (July-Dec) period of the current fiscal year 2017-18.

Official data compiled by economic ministries showed that the reliance on short term borrowings and launching of two international bonds made major contributions with the share of 62.5 percent equivalent to $3.663 billion through these two avenues out of total received foreign funding in shape of both loans and grants of $5.895 billion in first half of fiscal year 2017-18.

China has become the largest bilateral donor as Beijing disbursed $506.92 million in first six months of the ongoing fiscal year.

The government continued commercial borrowings in order to shore up its dwindling foreign currency reserves as they generated $1.092 billion in first five months (July-Nov) period and another $71.6 million in December 2017 so total commercial borrowings |

went up to $1.163 billion in first half of the current fiscal year.

The government had envisaged generating $1 billion with the help of commercial borrowings for whole financial year 2017-18 but it had crossed its limits just in first six months of the ongoing fiscal year.