[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]During the fiscal year 2022-23 (FY23), the federal government borrowed $10.844 billion from various financing sources, which marks a notable decrease of around 37% compared to the $16.974 billion borrowed in the same period of 2021-22 (FY22).
For FY23, the government had allocated a budget of $22.817 billion for foreign assistance, including $7.5 billion from foreign commercial banks. However, the $10.844 billion borrowed does not encompass the rollover of friendly countries’ deposits amounting to $6 billion (split equally between China and Saudi Arabia) and the refinancing of a Chinese loan worth $1.3 billion.
Economic Affairs Division data indicates that the country borrowed $2.206 billion from foreign commercial banks during FY23, with $1.306 billion of that amount borrowed in June 2023. This falls short of the budgeted $7.472 billion under this category, resulting in a shortfall of $5.266 billion for the period. In contrast, during the same period in FY22, the country received $2.4.863 billion from foreign commercial banks.
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The country received $1.166 billion from the International Monetary Fund (IMF) during FY23. Excluding the IMF loan, the total inflow during FY23 amounted to $9.678 billion compared to $16.974 billion in FY22, indicating a slowdown in inflows.
Throughout June 2023, the government secured $2.231 billion in external loans. The country received $788.97 million under the “Naya Pakistan Certificate” category during the fiscal year, with $46.03 million of that received in June 2023.
In total, the country received $5.224 billion from multilaterals, $1.458 billion from bilateral sources, and $1.166 billion from the IMF during FY23. The non-project aid amounted to $8.779 billion, with $7.419 billion allocated for budgetary support and $2.064 billion for project aid.
Specifically, the Asian Development Bank (ADB) disbursed $2.266 billion during the period under review, falling short of the budgeted $3.202 billion. China disbursed $128.03 million during the fiscal year, while Saudi Arabia provided $1.182 billion under the oil facility category for FY23. The US disbursed $31.13 million, Korea disbursed $27.42 million, and France disbursed $33.81 million during the period.
Furthermore, the International Development Association (IDA) disbursed $1.907 billion, exceeding the budgeted $1.388 billion, including $429.33 million disbursed in June. The International Bank for Reconstruction and Development (IBRD) disbursed $290.06 million against the budgeted $1.246 billion, and the Islamic Development Bank disbursed $16.81 million compared to the budgeted $3.38 million. Additionally, the Islamic Development Bank (Short-term) disbursed $161 million in FY23. The Asian Infrastructure Investment Bank (AIIB) disbursed $558.96 million, and the Economic Cooperation Organization (ECO) Trade Bank disbursed $64.59 million during FY23.
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