FY23: Pakistan received foreign loans of $10.84 billion

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In contrast to the $16.974 billion borrowed during the same time of fiscal year 2021–2022 (FY22), the federal government borrowed $10.844 billion from various funding sources for fiscal year 2022–2023 (FY23), a decrease of around 37%.

For FY23, the government allocated $22.817 billion for foreign aid, including $7.5 billion from international commercial banks.

The rollover of deposits from friendly nations totaling $6 billion (i.e., $3 billion each from China and Saudi Arabia) and the refinancing of a Chinese loan totaling $1.3 billion are not included in the $10.844 billion, though.

According to data from the Economic Affairs Division, the nation borrowed $2.206 billion ($1.306 billion in June 2023) from foreign commercial banks during FY23.

However, just $2.206 billion of the government’s anticipated $7.472 billion for borrowing from foreign commercial banks materialized, leaving a $5.266 billion shortfall for the time under review. During the same time period of FY22, the nation got $2.4.863 billion from international commercial banks.

During FY23, the nation got $1.166 billion from the International Monetary Fund (IMF). The EAD has listed the loans obtained from the IMF, which is different from previous practices.

The country received $9.678 billion in FY23 compared to $16.974 billion in the same time of FY22, indicating a decline in inflows, if the IMF loan is eliminated.

In June 2023, the government secured loans from abroad totaling $2.231 billion. During the fiscal year, the nation got $788.97 million under the “Naya Pakistan Certificate” heading, including $46.03 million in June 2023.

During FY23, the nation received $1.166 billion from the IMF, $1.458 billion from bilaterals, and $5.224 billion from multilaterals. $8.779 billion in non-project aid, including $7.419 billion for budgetary support, and $2.064 billion of project aid were allocated.

During the reviewed period, the Asian Development Bank (ADB) distributed $2.266 billion as opposed to the $3.202 billion budgeted. In June 2023, ADB disbursed $229.91 million.

During the fiscal year, China paid out $128.03 million; however, in June, no money was received from China. In contrast to the $800 million planned under the head of an oil plant, Saudi Arabia spent $1.182 billion in FY23.

Compared to the $32.49 million allocated for the fiscal year, US spent $31.13 million throughout the reviewed period. During the time period under consideration, Korea disbursed $27.42 million and France $33.81 million.

In contrast to the $1.388 billion budgeted, the IDA disbursed $1.907 billion, including $429.33 million in June; the IBRD disbursed $290.06 million versus the $1.246 billion budgeted; and the Islamic

Development Bank disbursed $16.81 million versus the $3.38 million budgeted. In FY23, IsDB (Short-term) paid out $161 million. In FY23, the ECO (Trade Bank) disbursed $64.59 million, compared to $558.96 million from the AIIB.