Pakistan has achieved a significant milestone in its external financing efforts, securing a total of $5.968 billion during the first half of the fiscal year 2024 (1HFY24).

This amount, as reported by the Economic Affairs Division (EAD), is part of the country’s targeted $17.62 billion for the entire fiscal year.

In December alone, the country received external financing amounting to $1.621 billion. This comprised $1.609 billion in loans and $12.16 million in grants from various sources.

A notable portion of this financing includes a $517.8 million loan for non-project aid.

This aid is broken down into $172.83 million for program/budgetary support to restructure Pakistan’s economy, $249.38 million from DPC, and $95.18 million obtained for the SFD oil facility.

Data from the EAD indicates that disbursements from bilateral and multilateral development partners remained robust.

December witnessed a total inflow of $1.537 billion, contributing to the six-month figure of $2.968 billion. These inflows have played a crucial role in bolstering Pakistan’s foreign exchange reserves.

The Ministry of Economic Affairs highlighted Pakistan’s reliance on foreign commercial borrowing, which stood at $83.96 million in December, sourced primarily through the Naya Pakistan Certificate.

The breakdown of assistance from multilateral sources reveals that Pakistan received nearly $1.398 billion in December and $2.245 billion over the six months. 

The International Development Association-World Bank (IDA) emerged as a major contributor, providing $638.1 million in December.

This was followed by the Asian Development Bank (ADB) with $468.96 million, Asian Infrastructure Investment Bank (AIIB) with $254.6 million, the International Bank for Reconstruction and Development (IBRD) with $29.33 million, and the International Fund for Agricultural Development (IFAD) with $7.83 million.

On a cumulative basis for the half-year, IDA’s contribution stood at $1.04 billion, with ADB at $589.43 million, and AIIB at $287.04 million. Bilateral development partners contributed a total of $138.72 million in December and $723.13 million over the six-month period.

From bilateral sources, Pakistan received significant amounts from several countries in December.

Saudi Arabia, through the Oil Facility, provided $95.18 million, followed by China with $33.92 million, Germany with $7.63 million, and the USA with $1.74 million. In the first half of FY24, Saudi Arabia’s contribution was the highest, totaling $595.18 million.