Pakistan receives Rs1,571b external inflows in 10 months

ISLAMABAD: Pakistan has so far obtained $10.19 billion (Rs1,571 billion) external inflows from all multilateral, bilateral creditors and through raising international bonds during the first 10 months (July-April) period of the current fiscal year 2020-21.

Out of $10.19 billion dollar inflows, Islamabad received a major chunk to the tune of $9.97 billion in the shape of foreign loans from all creditors and only fetched $222 million in the shape of grants in first 10 months of the current fiscal year. The government had envisaged total external inflows of $12.233 billion for the whole financial year 2020-21, both in shape of loans and grants. Almost one third to the tune of $3.246 billion were obtained through expensive commercial borrowings so far in the current fiscal year. The commercial borrowing from banks is being used as bridge financing for meeting the overall external financing requirements.

Out of total dollar inflows of $10.19 billion, Pakistan has been able to get disbursements of $3.07 billion in the first 10 months of the current fiscal year. The Asian Development Bank disbursed $1.256 billion, Asian Infrastructure Investment Bank (AIIB) $252 million, EU $2.67 million, WB’s IBRDS $371.26 million, WB’s IDA loan of $589.6 million, IDB $26 million, IDB (short term) $502.74 million, IFAD $34.5 million and MTDF $39.5 million. The bilateral creditors disbursed $376.5 million, including China $147.5 million, France $38.9 million, Germany $16.19 million, Japan $15.57 million, Korea $4.27 million, Kuwait $6.03 million, Saudi Arabia $1.22 million, UK $47.99 million and USA $98.07 million.

The multilateral and bilateral creditors jointly disbursed $3.449 billion in the first 10 months of the current fiscal year. The government raised Eurobond to fetch $2.5 billion during the current fiscal year. Against envisaged $1 billion from Saudi Arabia as short-term loan, the government has so far received no amount. However, there was $1 billion lying in safe deposits.