Pakistan Borrowed 38% Fewer Loans in 5 Months of FY25 Than Last Year

Pakistan borrowed $2.667 billion from multiple financing sources during the first five months (July-November) of the current fiscal year 2024-25 compared to $4.285 billion borrowed during the same period of 2023-24, revealed the Economic Affairs Division (EAD) data. The $2.667 billion does not include the first tranche of $1.03 billion, received from the International Monetary Fund (IMF). If the IMF inflows are added, total inflows would reach $3.697 billion during the first five months of the current fiscal year. The data revealed that the government has budgeted time deposits of $9 billion including a $5 billion KSA time deposit and a $4 billion SAFE China deposit for the current fiscal year, however, no money was received in the first five months (July-November) under this head. There is also no mention of assistance from UAE. In the first week of December 2024, Saudi Arabia extended a $3 billion deposit placed with Pakistan for another year, however, the EAD data covering the first five months does not reflect it. The government had budgeted $19.393 billion from multiple financing sources for the fiscal year 2024-25 including $19.216 billion loans and $176.29 million grants. However, this does not include any amount from IMF. The data further showed that the government had budgeted $3.779 billion from foreign commercial banks for the fiscal year 2024-25. The country received $200 million under this heading in September, but there is no mention of which foreign commercial bank the country received the loans from. The country did not borrow from commercial banks in November, as per EAD data. The government has also budgeted $1 billion from the issuance of bonds; however, as the country did not issue the bonds, hence no amount was received during the first five months of 2024-25. The country received $944.20 million in November from different sources mainly due to $594.78 million received from Asian Development Bank (ADB). The country received $734.90 million under the head of the “Naya Pakistan Certificate” during the first five months of the current fiscal year 2024-25 including $192.75 million in November. The country received $1.464 billion from multilateral and $268.80 million from bilateral during July-November 2024. The non-project aid was $1.597 billion including $743.47 million for budgetary support and project aid was $1.070 billion during the first five months of cthe urrent fiscal year. ADB disbursed $767.83 million during the period under review compared to the budgeted $1.651 billion for the fiscal year 2024-25. The IDA disbursed $304.78 million in July-November against the budgeted $1.525 billion for the fiscal year 2024-25 and IBRD $110.28 million against the budgeted $550.22 million. The IsDB (Short-term) disbursed $119.25 million during the first five months of the current fiscal year against $550.22 million for the fiscal year 2024-25 and AIIB disbursed $34.25 million, while IFAD disbursed $26.12 million against the budgeted $40.45 million for the fiscal year 2024-25. China disbursed $98.21 million in July-November. The government has budgeted $134.18 million from China for the fiscal year 2024-25. Saudi Arabia disbursed $8.67 million in the first five months of fiscal year 2024-25 against the budgeted $76.02 million for the entire fiscal year. The USA disbursed $38.25 million in the first five months of the current fiscal year against the budgeted $20.88 million for the fiscal year 2024-25.