By Staff reporter
ISLAMABAD: Inflows of dollars in the form of loans/grants shrank 27 percent to $505 million in May 2022 from $699 million in the same month last year, data showed on Tuesday, creditable to the IMF’s freezing of its loan programme.
The long limbo in striking a staff-level agreement with the IMF to resume a $6 billion loan deal is said to be the main culprit behind the throttling of these direly needed inflows.
Pakistan received $13.5 billion in loans and grants in the first eleven months (July-May) of this fiscal year, according to data released by the Economic Affairs Division, whereas the government could not get a single penny through commercial borrowing in May 2022.
The government had estimated to receive $14.008 billion for the whole fiscal year 2021-22. In the fiscal year 2020-21, these inflows stood at $12.3 billion.
The government will somehow have to conjure up more $500 million in June 2022 to meet the budgetary target of $14.008 billion for the outgoing fiscal year.
Out of $505.6 million received in May 2022, $194 million was raised through guaranteed loans. The multilateral lenders credited loans worth $204 million and bilateral $107.23 million last month.
The inflows slowed down mainly after the suspension of the IMF loan programme, forcing the government to borrow from the commercial banks.
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