Pakistan received $15.4bn Loans in Jul’22 to May’23 period

May 22, 2023

According to the Ministry of Economic Affairs, Pakistan has received $15.4 billion in financing during the first 10 months (July-April) of the current fiscal year 2022-23. This figure contradicts reports in some sections of the press claiming that Pakistan only received $8.1 billion during the same period.

The total amount of financing received is indeed $15.4 billion, which includes deposits from friendly countries amounting to $6.0 billion (with $3.0 billion each from China and Saudi Arabia) and the refinancing of a Chinese loan worth $1.3 billion, which has been recorded as foreign currency denominated domestic debt.

The Government of Pakistan has made arrangements for financing to meet its loan repayment obligations during the current fiscal year (2022-23) and anticipates an improvement in its foreign exchange reserves.

According to data from the Ministry of Economic Affairs, the government has budgeted for foreign assistance amounting to $22.817 billion for the current fiscal year, which includes $7.5 billion from foreign commercial banks.

The latest data released by the ministry indicates that the government has borrowed $8.123 billion from multiple financing sources, including $900 million from foreign commercial banks, during the first 10 months (July-April) of 2022-23. This represents a decline of approximately 37.7 percent compared to the borrowing of $13.033 billion during the same period in the previous fiscal year.

During the first 10 months of 2022-23, Pakistan received $1.166 billion from the International Monetary Fund (IMF). The Ministry of Economic Affairs has also provided a list of loans obtained from the IMF, departing from past practices. Excluding the IMF loan, the country received $6.957 billion during the first 10 months of the current fiscal year, compared to $13.033 billion during the same period in the previous fiscal year, indicating a slowdown in inflows.