In the first quarter of the fiscal year 2023-24 (FY24), Pakistan secured foreign loans amounting to $3.527 billion, reflecting a significant upsurge from the $2.234 billion borrowed during the same period in FY23.
Data released by the Economic Affairs Division (EAD) indicates the country's efforts to bolster its financial position, and it further unveils a dynamic picture of Pakistan's financial activities. In September 2023, the country received $320.92 million, compared to $625.86 million in September 2022, indicating variations in monthly inflows.
IMF tranche and UAE disbursement
While the government budgeted for $2.4 billion from the International Monetary Fund (IMF) for FY24, the EAD data does not currently account for the $1.2 billion received as the first tranche of the $3 billion Stand-By Arrangement (SBA) in July 2023.
Additionally, the data omits mention of the $1 billion disbursed by the UAE. If these inflows are included, Pakistan's total foreign loans during the first three months of the fiscal year would reach a noteworthy $5.727 billion.
Saudi Arabia's $2bn time deposit
Among the highlights of these inflows, Pakistan received a substantial $2 billion from Saudi Arabia under the category of time deposit during July 2023. This contribution plays a pivotal role in the country's foreign financing activities.
No foreign commercial bank loans
Despite budgeting for $4.5 billion from foreign commercial banks in FY24, the government did not receive any funds under this category during the first quarter of the fiscal year.
Similarly, Pakistan had budgeted for $1.5 billion from the issuance of bonds, but as of now, the country has not issued any bonds, resulting in no funds received under this segment.
Pakistan's financial landscape continues to evolve, marked by significant borrowing and support from various international sources, setting the stage for potential economic development in the months ahead.
