Pakistan Incurs External Debt of $5.1 Billion in First Five Months of FY23

The government has borrowed $5.114 billion from multiple financing sources during the first five months (July-November) of the fiscal year 2022-23 (FY23) compared to $4.699 billion borrowed during the same period of the last fiscal year. The Economic Affairs Division data revealed that Pakistan procured $846.76 million external loans in November 2022 mainly due to the disbursement of $500 million by the Asian Infrastructure Investment Bank (AIIB) compared to $692.57 million during the same month of the last fiscal year. The country borrowed $200 million from foreign commercial banks during the first five months of the current fiscal year 2022-23. It also received $139.28 million under the head of “Naya Pakistan Certificate” during the first five months of the current fiscal year including $69.75 million in November 2022. The government has budgeted foreign assistance of $22.817 billion for the current fiscal year including $7.5 billion from foreign commercial banks. The country received $3.006 billion from multilaterals, $602.86 million from bilaterals, and $1.166 billion from IMF during July-November FY23. The non-project aid was $4.457 billion including $3.785 billion for budgetary support and project aid was $656.37 million. China disbursed $54.93 million in the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year, however, no money was received in October and November. Saudi Arabia disbursed $500 million against the budgeted $800 million. The US disbursed $10.59 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $18.38 million and France $8.64 million during the first five months of the current fiscal year. The Asian Development Bank (ADB) disbursed $1.676 billion during the first five months of the current fiscal year out of the $3.202 billion budgeted for the current fiscal year. ADB disbursed $41.66 million in November 2022. The IDA disbursed $548.07 million against the budgeted $1.4 billion, IBRD $75.89 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $15.30 million against the budgeted $3.38 million for the current financial year. IsDB (Short-term) disbursed $161 million in the current fiscal year.