Govt borrowing declines 39.18pc to $7.76bn YoY

[muhammadhafeezmalik]

Govt borrowing declines 39.18pc to $7.76bn YoY

The government has borrowed $7.764 billion from multiple financing sources, including $900 million from foreign commercial banks, during the first nine months (July-March) of 2022-23 compared to $12.767 billion borrowed during the same period of last fiscal year, showing a decline of 39.18 percent.

The Economic Affairs Division data shows that the country has not received foreign assistance from China for the sixth consecutive month in March, and $54.93 million was received during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year.

The country borrowed $900 million from foreign commercial banks during the first nine months of the current fiscal year 2022-23 including $700 million in February. However, no loans were borrowed from foreign commercial banks during March 2023. The country had received $2.623 billion from foreign commercial banks during the same period of last year, shows the Economic Affairs Division data.

The country received $1.166 billion from the International Monetary Fund (IMF) during the first nine months (July-March) of 2022-23. Contrary to past practices, the EAD has also listed the loans taken from the IMF. If the IMF loan is excluded, then the country received $6.598 during the first nine months of current fiscal year compared to $12.767 billion during the same period of last fiscal year, indicating the slowdown in inflows.

The government procured $358.71 billion external loans in March 2023. The country received $612.30 million under the head of “Naya Pakistan Certificate” during the first nine months of current fiscal year including $73.88 million in March 2023.

The government has budgeted foreign assistance of $22.817 billion for the current fiscal year including $7.5 billion foreign commercial banks.

The country received $4.021 billion from multilaterals, $1.064 million from bilateral and $1.166 billion from IMF during July-March 2022-23. The non-project aid was $6.331 billion including $5.272 billion for budgetary support and project aid was $1.432 billion.

Asian Development Bank (ADB) disbursed $1.940 billion during the period under review compared to the budgeted $3.202 billion for the entire fiscal year. ADB disbursed $12.46 million in March 2023.

China disbursed $54.93 million in during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year, however, no money was received in October, November, December, January, February and March. Saudi Arabia disbursed $782.28 million against the budgeted $800 million under the head of oil facility during the first eight months, however, no money was disbursed in March. The USA disbursed $24.27 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $21.31 million and France $29.87 million during the first nine months of the current fiscal year.

The IDA $1.102 billion against the budgeted $1.4 billion during the first nine months including $83.87 including in March, IBRD $146.99 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million for the current financial year. IsDB (Short-term) disbursed $161 million in the current fiscal year. AIIB disbursed $546.75 million in the current fiscal year so far, while ECO (Trade Bank) disbursed $54.12 million.

BR-ePaper | Apr 20, 2023 | Page Front Page 1

epaper.brecorder.com

 

[alimobin memon]

Govt borrowing declines 39.18pc to $7.76bn YoY

The government has borrowed $7.764 billion from multiple financing sources, including $900 million from foreign commercial banks, during the first nine months (July-March) of 2022-23 compared to $12.767 billion borrowed during the same period of last fiscal year, showing a decline of 39.18 percent.

The Economic Affairs Division data shows that the country has not received foreign assistance from China for the sixth consecutive month in March, and $54.93 million was received during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year.

The country borrowed $900 million from foreign commercial banks during the first nine months of the current fiscal year 2022-23 including $700 million in February. However, no loans were borrowed from foreign commercial banks during March 2023. The country had received $2.623 billion from foreign commercial banks during the same period of last year, shows the Economic Affairs Division data.

The country received $1.166 billion from the International Monetary Fund (IMF) during the first nine months (July-March) of 2022-23. Contrary to past practices, the EAD has also listed the loans taken from the IMF. If the IMF loan is excluded, then the country received $6.598 during the first nine months of current fiscal year compared to $12.767 billion during the same period of last fiscal year, indicating the slowdown in inflows.

The government procured $358.71 billion external loans in March 2023. The country received $612.30 million under the head of “Naya Pakistan Certificate” during the first nine months of current fiscal year including $73.88 million in March 2023.

The government has budgeted foreign assistance of $22.817 billion for the current fiscal year including $7.5 billion foreign commercial banks.

The country received $4.021 billion from multilaterals, $1.064 million from bilateral and $1.166 billion from IMF during July-March 2022-23. The non-project aid was $6.331 billion including $5.272 billion for budgetary support and project aid was $1.432 billion.

Asian Development Bank (ADB) disbursed $1.940 billion during the period under review compared to the budgeted $3.202 billion for the entire fiscal year. ADB disbursed $12.46 million in March 2023.

China disbursed $54.93 million in during the first quarter against the government budgeted estimates of $49.02 million for the current fiscal year, however, no money was received in October, November, December, January, February and March. Saudi Arabia disbursed $782.28 million against the budgeted $800 million under the head of oil facility during the first eight months, however, no money was disbursed in March. The USA disbursed $24.27 million during the period under review against the budgeted $32.49 million for the current fiscal year. Korea disbursed $21.31 million and France $29.87 million during the first nine months of the current fiscal year.

The IDA $1.102 billion against the budgeted $1.4 billion during the first nine months including $83.87 including in March, IBRD $146.99 million against the budgeted $1.246 billion and Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million for the current financial year. IsDB (Short-term) disbursed $161 million in the current fiscal year. AIIB disbursed $546.75 million in the current fiscal year so far, while ECO (Trade Bank) disbursed $54.12 million.

BR-ePaper | Apr 20, 2023 | Page Front Page 1

epaper.brecorder.com

When no one is giving this is bound to happen hahaha

 

[That Guy]

That's because no one is willing to lend the government any money.

This isn't a brag, this is a dire sign of things to come.

 

[maithil]

So how is Govt managing its expenses? Borrowing at 21% from local banks ?

 

[SoulSpokesman]

@maithil

Also cutting down on expenses.

Regards

 

[maithil]

Looks like creative accounting being done.

ICBC re-routes $1 billion loan | The Express Tribune

Provides funds via bank’s Karachi branch due to Pakistan’s poor credit rating

tribune.com.pk

Industrial and Commercial Bank of China (ICBC) has not directly given a $1.3 billion loan due to Pakistan’s highly risky credit rating and instead disbursed funds through its Karachi branch to help bail out Islamabad.

Because of the re-routing of funds, Pakistan has not recorded $1 billion as foreign debt, disbursed by ICBC in March, according to government sources.

Instead, the $1 billion loan has been treated as foreign currency-denominated domestic debt, an accounting entry that will understate external public debt and reflect lower-than-actual debt repayment. The remaining $300 million was disbursed this month.

The development underscores the challenges that Islamabad is facing in arranging foreign commercial loans as part of plans to raise over $6 billion to meet a core condition of the International Monetary Fund (IMF) for the revival of its loan programme.

The Ministry of Economic Affairs on Wednesday released the external loan details for July-March 2022-23, which showed that Pakistan received only $348 million in foreign loans during March, a figure underreported by $1 billion.