Govt Plans to Generate Up To $11 Billion in Loans in FY23

The coalition government is looking to generate approximately $10 to $11 billion in funds during the current fiscal year after the announcement of the staff level agreement with the International Monetary Fund (IMF). The revival of the IMF program will not only provide $1.17 billion but will pave the way for a Letter of Comfort (LoC) from the IMF and the revival of lending programmes from the World Bank (WB), Asian Development Bank (ADB) and the Islamic Development Bank (IDB). The ADB has announced to provide $1.5-$2.5 billion to Pakistan by December. In addition to this, the WB also provides an amount of $2-$2.5 billion to the country annually for development projects. Similarly, the annual amount received from IDB is expected to be around $1-$2 billion. Apart from these programs, Pakistan is expecting a rollover of $4 billion from China by December 2022 along with a rollover from UAE as well as Saudi Arabia. If all goes as planned, the government could generate funds of over $14 billion for the current fiscal year. The government also issues Euro Bonds and Sukuks in the international market each year to raise funds which will further increase the funds.