Pakistan signs $8.27bn of foreign funding during FY21

July 2, 2021

343

The Pakistani government signed new agreements worth $ 8,276 million with various development Institutes and foreign commercial banks during the fiscal year 2021, according to a quarterly report on foreign economic aid issued by the Ministry of Economy on Thursday.

Of the total new agreements, $ 3,988 million in financing agreements were concluded with multilateral development partners, $ 3,110 million with foreign commercial banks, $ 1,000 million in safe deposits, and $ 178 million with bilateral development partners.

According to the report, the value of the agreements was about $ 3,110 million, representing 38% of the total new liabilities, which were commercial loans. This financing was arranged for the purpose of refinancing the outstanding trade debt. $ 1,000 million (12%) of Chinese SAFE deposit has been agreed to repay the friendly country’s deposits.

After commercial banks and safe deposits, the World Bank became the largest development partner in terms of new commitments to the FEA (30%), followed by the Asian Development Bank (7%), the Islamic Development Bank (6%) and the Asian Infrastructure Investment Bank (4%). ).

During this period, USD 4,527 million was allocated to support the budget; Of this amount, $ 1,697 was allocated by multilateral development partners to fund the program. The funding of the program is designed to broaden and deepen the financial system, improve financial management and the regulatory framework in order to strengthen growth and competitiveness in Pakistan. The remaining $ 3,110 million was negotiated from foreign commercial banks. An amount of $ 2,269 million was allocated to finance the project. Similarly, SAFE secured $ 1,000 million. The remaining $ 480 million was negotiated for commodity financing purposes.

Disbursements of $ 7.4 billion during FY21 from July to March were mainly within project and program loans / grants from multilateral and bilateral development partners and financial institutions.