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Monday 26th September 2022 / 0 Rabiulawal 1444

Pakistan gets foreign debt worth $4.5bn in five months

ISLAMABAD: Pakistan has acquired a foreign debt of $4.5 billion from multiple financing sources in the first five months (July-November) of 2020-21.

The foreign debt included $1.62 billion from foreign commercial banks projected at 36 percent of total budgeted external loans of $12.233 billion for the entire fiscal year 2020-21.

The recently released data from the Economic Affairs Division revealed that in November the country received $1.4 billion external inflows from multiple financing sources including $1.054 billion from foreign commercial banks.

The external inflows during the corresponding period (July-November) of the fiscal year 2019-20 were $3.1 billion, which were around 24 percent of the annual budgeted amount of $12.958 billion.

Read more: Mango exports increased to $104 million in 2019-20

In the aftermath of coronavirus and its second wave in the country, the disbursements of project financing from development partners dried up during the last quarter of the fiscal year 2019-20.

The pandemic led to the closure of many economic activities across the country including development project activities. However, after the ease in the lockdown by the government, the economic activity is reviving which may lead to a revival of the project financing in the current fiscal year 2020-21, the EAD added.

The total receipt of $4.499 billion constitutes $1,300 million or 29 percent as program/budgetary support assistance; $1,621 million (36 percent) as foreign commercial borrowing; and $518 million (12 percent) as project assistance to finance its development projects activities for improving the socio-economic development of the country. 

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