Pakistan borrowed $714.74 million from various international financers during the first two months (July-August) of the current fiscal year 2024-25, a sharp decline compared to $3.206 billion secured during the same period last year.
According to data from the Economic Affairs Division (EAD), the country secured $270.53 million from various sources in August 2024.
A total of $259.04 million was raised through the “Naya Pakistan Certificate” during July-August 2024, including $131.35 million in August alone.
Multilateral sources contributed $292.99 million and bilateral sources $162.70 million during the two-month period.
Non-project aid amounted to $273.12 million, of which $14.07 million was for budgetary support. Project aid totaled $441.62 million.
The Asian Development Bank (ADB) disbursed $96.20 million during July-August, against a budget of $1.651 billion for FY25.
The International Development Association (IDA) provided $147.86 million, with a budget target of $1.525 billion, while the International Bank for Reconstruction and Development (IBRD) disbursed $28.88 million against a budgeted $550.22 million.
The Islamic Development Bank (IsDB) did not disburse any funds, despite the government’s target of $500 million for FY25.
The Asian Infrastructure Investment Bank (AIIB) disbursed $8.73 million, and the International Fund for Agricultural Development (IFAD) provided $9.59 million, against a budget of $40.45 million.
China disbursed $96.76 million in July, but no funds were received in August. The government had set a target of $134.18 million from China for the fiscal year. Saudi Arabia contributed $2.69 million in July, while no funds were received in August, against a budget of $146.54 million for FY25.
The United States disbursed $30.94 million in the first two months of FY25, exceeding the budgeted target of $20.87 million.
The government had set a target of $9 billion in time deposits, including $5 billion from Saudi Arabia and $4 billion from China’s SAFE deposit for FY25. However, no funds were received under this category during the first two months, and there was no mention of any assistance from the UAE.
The budget for FY25 included estimates of $19.393 billion from multiple financing sources, with $19.216 billion in loans and $176.29 million in grants, excluding any contribution from the International Monetary Fund (IMF).
Loans totalled $9.81bn in five years
In a related development, Pakistan received a total of $9.81 billion in loans from international financial institutions and foreign governments during the past five years to support various development projects across the country.
Over the five-year period, the country paid $889.16 million in interest on these loans.
The Asian Development Bank (ADB) was one of the top contributors, providing $1.303 billion, with Pakistan paying $181.76 million in interest. China emerged as the largest lender, offering $2.55 billion in loans, on which $348.47 million in interest was paid.
Germany extended $10 million in financial support for development initiatives, with Pakistan paying $370,000 in interest, while France provided $231.7 million in loans, accompanied by $2.43 million in interest payments. Japan contributed $97.4 million, with Pakistan incurring $9.88 million in interest charges.
Among other notable lenders, South Korea loaned $370.5 million, and Saudi Arabia provided $42.9 million, resulting in $7.57 million in interest payments to both countries. Kuwait granted $970 million, with $1.71 million in interest paid.
In addition, Pakistan received $2.751 billion from the World Bank’s International Development Association (IDA), resulting in $191.21 million in interest payments.
The International Bank for Reconstruction and Development (IBRD) lent $645.5 million, with interest costs amounting to $106.31 million.
Further contributions included $14.5 million from the Organization of the Petroleum Exporting Countries (OPEC), with $6.51 million paid in interest, and $131 million from the Asian Infrastructure Investment Bank (AIIB), which came with $8.81 million in interest payments.
These loans were allocated to various critical development projects, including hydropower initiatives, skills development programs, basic education, healthcare improvements, polio eradication, and the Covid-19 vaccination campaign.
