Pakistan Received Foreign Loans of $10.84 Billion in FY23

The federal government borrowed $10.844 billion from multiple financing sources during the fiscal year 2022-23 (FY23) compared to $16.974 billion borrowed during the same period of 2021-22 (FY22), showing a decline of around 37 percent. The government had budgeted foreign assistance of $22.817 billion for FY23 including $7.5 billion foreign commercial banks. However, the $10.844 billion does not include the rollover of friendly countries’ deposits amounting to $6 billion (i.e. $3 billion each from China and Saudi Arabia) and the re-financing of Chinese loan of $1.3 billion. The Economic Affairs Division data shows that the country borrowed $2.206 billion from foreign commercial banks during FY23 including $1.306 billion in June 2023. The government had budgeted $7.472 billion under the head of borrowing from foreign commercial banks, however, only $2.206 billion was materialized i.e. registered a shortfall of $5.266 billion during the period under review. The country received $2.4.863 billion from foreign commercial banks during the same period of FY22. The country received $1.166 billion from the International Monetary Fund (IMF) during FY23. Contrary to past practices, the EAD has also listed the loans taken from the IMF. If the IMF loan is excluded, then the country received $9.678 billion during FY23 compared to $16.974 billion during the same period of FY22, indicating the slowdown in inflows. The government procured $2.231 billion external loans in June 2023. The country received $788.97 million under the head of “Naya Pakistan Certificate” during the fiscal year including $46.03 million in June 2023. The country received $5.224 billion from multilaterals, $1.458 billion from bilateral and $1.166 billion from IMF during FY23. The non-project aid was $8.779 billion including $7.419 billion for budgetary support and project aid was $2.064 billion. Asian Development Bank (ADB) disbursed $2.266 billion during the period under review compared to the budgeted $3.202 billion. ADB disbursed $229.91 million in June 2023. China disbursed $128.03 million during the fiscal year, however, no amount was received in June. Saudi Arabia disbursed $1.182 billion against the budgeted $800 million under the head of an oil facility during FY23. The US disbursed $31.13 million during the period under review against the budgeted $32.49 million for the fiscal year. Korea disbursed $27.42 million and France $33.81 million during the period under review. The IDA disbursed $1.907 billion against the budgeted $1.388 billion including $429.33 million in June, IBRD $290.06 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million. IsDB (Short-term) disbursed $161 million in FY23. AIIB disbursed $558.96 million, while ECO (Trade Bank) disbursed $64.59 million in FY23.