Pakistan secures $12.02 billion in loans and grants in seven months

ISLAMABAD: Pakistan has secured a total of $12.02 billion in loans and grants in the first seven months (July-January) of the current fiscal year 2021-22.

According to official data on total foreign loans and grants obtained by Islamabad, the pace of obtaining external loans and grants has doubled, with the government having received total external loans and grants of $12.02 billion over the past few years. first seven months of the current 2021-22 financial year. compared to $6.66 billion received in the same period last fiscal year 2020-21.

The revival of the Fund’s program accelerated the pace of external debt accumulation, as the government had continuously relied on securing dollar loans by issuing international bonds, obtaining commercial loans and by obtaining loans for the purposes of government guaranteed loans for public sector entities. such as to meet defense requirements in January 2022. The government secured more than $2.59 billion in loans and grants in January 2022.

Commercial loans have continued to see a phenomenal increase as the government has secured $2.6 billion so far in the first seven months of the current fiscal year. In January 2022 alone, the government secured $591.2 million in commercial loans.

Of the total commercial loans of $2.6 billion, Islamabad secured $1.14 billion from Dubai Bank, $531.2 million from Emirates NBD, $487 million from Standard Chartered Bank London, $343 million from the Sussie, ABL, UBL consortium and $61 million from Ajman Bank. .

Pakistan has recouped $12.02 billion in the form of loans and grants in the first seven months (July-January) of the current financial year 2021-22. In January 2022, Islamabad secured a total dollar loan of $2.59 billion.

Pakistan had obtained deposits of $3 billion from Saudi Arabia in December 2021, so it was continuously part of the total dollar inflows in the current financial year.

Pakistan had estimated that it would get total loans and grants of $14.088 billion and with IMF loans total dollar loans would reach $17 billion, but its external financing needs have increased. more, mainly due to a higher than expected current account deficit. The government has recovered a total of $832 million in state-guaranteed loans in the first seven months of the current fiscal year, of which $531 million was obtained in January 2022 for defense purposes.

Out of total inflows received of $12.02 billion in the first seven months of the current fiscal year, Pakistan secured $196 million from bilateral creditors. China provided $100.8 million, France $7.36 million, Germany $12.25 million, Japan $11.38 million, Korea $0.13 million, Saudi Arabia $1.09 million, the United States $45.27 million and the United Kingdom $14.54 million.

Multilateral creditors disbursed total loans of $3.329 billion in the first seven months of the current fiscal year, of which AfDB disbursed $1.092 billion, AIIB $38.77 million, EU 22, WB $55 million, WB IBRD $153.6 million and WB IDA soft loans $847.3 million, IDB $66.24. $1.086 billion short term from IDB, $18.3 million from IFAD and $3.85 million from MTDF.

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