By Staff Reporter
ISLAMABAD: Pakistan secured $16.08 billion in foreign loans and grants in the first 10 months of fiscal 2024-25, falling short of its $19.2 billion target for the year ending June 30.
Half of the haul came from legacy rollovers by China, Saudi Arabia, and the United Arab Emirates, while fresh inflows slumped amid delays in an International Monetary Fund bailout.
The Economic Affairs Division (EAD), in its monthly Foreign Economic Assistance report, pegged fresh loans and grants at $6.086 billion for July through April, down nearly 15% from $7.142 billion in the same stretch last year.
“Against its annual target of $19.4 billion, FEA in July-April amounted to $6.086 billion,” the EAD said, noting the drop reflected setbacks in securing a $1 billion IMF disbursement tied to the $7 billion Extended Fund Facility. Another $1 billion IMF tranche, received last week, is also excluded from the tally, tracked separately by the State Bank of Pakistan.
Total external assistance hit $16.08 billion, bolstered by $8 billion in rollovers, $3 billion from Saudi Arabia, $2 billion from the UAE, and $3 billion from China. Pakistan leans heavily on a $12.7 billion annual rollover portfolio from these allies, leaving its net international reserves at roughly $3.3 billion.
Fresh inflows recorded by the EAD took a hit, sliding to $6.086 billion from $8.2 billion a year earlier, when IMF funds were included. April saw $576 million roll in, edging up from March’s $555 million but trailing January’s $830 million peak. February slumped to $237 million. Of this year’s total, $3.45 billion went to budgetary support and program loans, with $2.6 billion earmarked for projects—compared to $4.8 billion and $2.3 billion, respectively, last year.
Multilateral lenders provided $2.98 billion, up slightly from $2.86 billion a year ago, led by $1.253 billion from the Asian Development Bank and $1.07 billion from the World Bank. Bilateral aid, however, cratered 58% to $372 million from $878 million. Commercial loans from UAE-based banks ticked up to $706 million, a modest rebound after foreign banks shunned Pakistan last year amid economic jitters.
Facing a shortfall, the government is banking on $3.8 billion from commercial banks and $1 billion from international bonds this year, targets undercut by the IMF delays and shaky economic footing. A projected $9 billion from China and Saudi Arabia, including a $5 billion Saudi time deposit and $4 billion from China’s SAFE deposit, looms large. “These projections are critical for Pakistan to meet its external financing gap as part of the IMF programme,” officials have stressed.
Overseas Pakistanis chipped in $1.61 billion via Naya Pakistan Certificates, nearly double last year’s $886 million, offering a lifeline.
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