by Tahir Amin in Business Recorder,19 Nov 2020
ISLAMABAD: Pakistan incurred foreign debt of $3.181 billion from multiple financing sources in the first four months (July-October) of 2020-21, including $566.27 million from foreign commercial banks projected at 26 percent of total budgeted external loans of $12.233 billion for the entire fiscal year.
Official documents available with Business Recorder revealed that in October the country received $327.79 million external inflows from multiple financing sources in October including $231.66 million from foreign commercial banks.
The external inflows during the corresponding period (July-October) of fiscal year 2019-20 were $2.525 billion which were around 19.5 percent of the annual budgeted amount of $12.958 billion.
In the aftermath of Covid-19 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 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, sources added. According to documents the government procured $566.27 million loans from foreign commercial banks during July-October 2020, including $34.62 million from Ajman Bank, $200 million from Standard Chartered Bank (London), $216.66 million from Dubai Bank and $115 million were received from the consortium-led by Suisse AG, UBL and ABL. The data also reflects the $1 billion of safe China deposit. The bilateral and multilateral development partners have disbursed $1.965 billion of foreign economic assistance during July-October of current fiscal year (2020-21) against the budgetary estimates of $5.811 billion for fiscal year 2020-21.
Amongst the multilateral development partners, mainly Asian Development Bank provided $665 million, Asia Infrastructure Investment Bank (AIIB) $250.01 million, World Bank disbursed $625 million against the budgetary allocation of $2.257 billion while from bilateral sources, France, USA and UK provided $32.65 million, $52.6 million and $13.45 million, respectively.
https://www.brecorder.com/news/40033796/country-incurs-3181bn-debt-in-4-months
