Pakistani government struggles to secure funding from international partners and lenders in first three quarters
Posted Date – 06:20 AM, Sun – 4/23/23
Islamabad: A media report said that the Pakistani government had difficulty securing funding from international partners and lenders in the first three quarters of the current fiscal year, mainly because of unresolved issues with the International Monetary Fund (IMF).
According to statistics released by the Ministry of Economic Affairs, the country received foreign loans worth US$7.76 billion in the July-March period of the 2022-23 fiscal year (July 2022-June 2023), up from US$12.7 billion in the same period. The dollar was down by nearly $5 billion. According to the Tribune, during the last fiscal year.
According to the source, the drop was due to no update of the IMF’s program. Pakistan is facing difficulties in securing international loans due to delays in securing deals with global banks, the Express Tribune reported.
The country received $4.2 billion in loans from international financial institutions in the first nine months of the fiscal year, according to the Economic Affairs Department’s monthly loan report. This includes $358.7 million received in March.
The government expects to receive foreign loans totaling $22 billion this fiscal year. However, the amount received so far is only one-third of the expected funding, with just three months left in the fiscal year, The Express Tribune reported.
The Asian Development Bank (ADB) provided loans of $1.94 billion, the World Bank more than $1.1 billion and the International Monetary Fund more than $1.16 billion, the Economic Affairs Division report said.
Furthermore, Saudi Arabia has reportedly been a major contributor to Pakistan’s borrowing. Riyadh has provided Islamabad with more than $880 million in loans, another $780 million in oil facilities and $100 million in project financing, the report said.
According to the Tribune, it said that Pakistan secured loans of $900 million from commercial banks, while more than $610 million was raised through the Naya Pakistan Certificate.
