$703m short-term loans obtained from foreign banks during 1st quarter FY 2017-18: EAD

ISLAMABAD: Economic Affairs Division (EAD) data revealed Pakistan has signed short-term commercial loan agreement of $703m during first quarter (July-September) of current financial year 2017-18 with various foreign commercial banks.

Till now, $458m have been released and government had budgeted $1b of foreign commercial loans for FY 2017-18, out of which 46pc has already been consumed, reported a local newspaper.

According to information available, finance division is said to have procured a $100m loan from CitiBank on 28th July and these funds have already been released. $75m loan was obtained from Citibank again on 24th August and another of $78m on 29th August.

To support dwindling foreign exchange reserves, the finance division also obtained a loan worth $450m from a Credit Suisse led consortium of banks on 26th September. Allied Bank and United Bank Limited are part of this consortium. The disbursement for this loan agreement stands at $205m so far.

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Sources disclosed the government is carrying out negotiations with other foreign commercial banks and will sign more loan agreements in coming months for budgetary support.

The current PML-N government has obtained $6.54b loans from foreign commercial banks. It received $322.5m in 2013-14, $1.4b in 2015-16, $4.367b in 2016-17 and $458m in first quarter of FY 2017-18. These commercial loans form 21pc of total $31.3b loans that have been obtained by this government since it came to power.

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