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.
