• Wednesday, November 20, 2019

China extended $4.4 billion loans to Pakistan during first ten months of FY18

Discussion in 'Central & South Asia' started by beijingwalker, May 29, 2018.

  1. beijingwalker

    beijingwalker ELITE MEMBER

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    China extended $4.4 billion loans to Pakistan during first ten months of FY18
    Budget makers had determined loans in the range of $8.09 billion for the current financial year 2017-18 but it surpassed that target by touching $9.6 billion in the first 10 months (July-April) 2017-18

    ByMonitoring Report - May 29, 2018047

    [​IMG]

    ISLAMABAD: Pakistan has received $4.4 billion from China in form of bilateral and commercial loans from its banks during the first ten months (July-April) of the outgoing financial year 2017-18.

    Due to a slowdown in disbursements from bilateral as well as multilateral creditors, Pakistan’s sole reliance on China has risen as it received $1.2 billion commercial loan from Chinese banks, reported The News.

    Loans from bilateral and multilateral creditors during April stood at $172 million, as China topped the list of bilateral credit by dishing out $228 million in April 2018 for implementation of various projects in Pakistan.

    And contingent on China giving $1 to $2 billion as safe deposits in the forthcoming days for boosting foreign exchange reserves, then its total financial support during the entire financial year 2017-18 could cross $6.5 billion.

    The increased inflows from China have not helped Pakistan in stemming the widening current account deficit due to rise in imports and failure to enhance exports which contributed to forex reserves continuing its declining trend in the current financial year 2017-18.

    Data available from Economic Affairs Division (EAD) on Monday revealed Pakistan depleted its budgetary projects by violating proposed limit for obtaining loans during first ten months of the outgoing financial year.

    Budget makers had determined loans in the range of $8.09 billion for the current financial year 2017-18 but it surpassed that target by touching $9.6 billion in the first 10 months (July-April) 2017-18.

    Disbursements from every bilateral and multilateral creditor recorded a fall during the outgoing financial year 2017-18 compared to China and various Chinese banks.

    Official data revealed Asian Development Bank (ADB) released loans of $681.46 million in July-April of FY 2017-18 and in April it disbursed $57.51 million.

    Canada disbursed $0.16 million, European Union (EU) $5.99 million and Asian Infrastructure Investment Bank (AIIB) $23.06 million, during this period.

    Also, Pakistan raised $2.5 billion via an issuance of Euro and Sukuk bonds in November 2017.

    For various development projects, China extended loans of $1.503 billion during July-April of FY 2017-18.

    Germany and France disbursed $18.72 million and $16.05 million loans during the first ten months of FY 2017-18 to Pakistan.

    Lending from World Bank’s IBRD was recorded at $173.62 million, IDA extended a loan of $272 million during first ten months of the outgoing financial year 2017-18.

    Islamic Development Bank (IDB) extended loans of $56.26 million and a short-term loan of $987.22 million during first 10 months of FY18.

    Grants from UK and USA were recorded at $88.11 million and $169.85 million respectively whereas loans from Japan stood at $86.14 million with Saudi Arabi providing $44 million during the above-mentioned period.
    https://profit.pakistantoday.com.pk...-to-pakistan-during-first-ten-months-of-fy18/
     
  2. khansaheeb

    khansaheeb SENIOR MEMBER

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    Please talk projects and ROI and not money.
     
  3. The_magnificent

    The_magnificent FULL MEMBER

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    so Pakistan moved from Kerry lugar bill to Soft loans :enjoy:
     
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  4. ziaulislam

    ziaulislam ELITE MEMBER

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    very poor reporting needs to understand..
    of course its helped, pakistan was able to sail pass a year of high CAD without even going to bond market, it reserves are exactly where it want at 16 billion dollars

    soft loans are great at 1% vs 6-7% bonds

    this year exports grew at 10%, if current growth is kept it should start balancing next year, so 1 more year of high CAD is needed to be seen through.

    i think next fiscal year we will see pakistan going to bond market.

    IMF or not really depends upon next govt comfort level, my guess is no but it is possible we get stand by package to pay off the current iMF debts..

    USA holding operational military cost/CSF is another problem but given pakistan has wind off its military operation ((lol hence holding of CSF) already would mean long term impact will be low

    PS:
    i am already tired psoting abuot pakistan vs india debt..how india CAD was greater than pakistan at this stage of economy and how there was debt was way higher and still higher than pakistan
     
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