In April 2024, Pakistan secured $237.24 million in external financing from various sources, according to the Economic Affairs Division (EAD). This sum included $228.64 million in loans and $8.60 million in grants.
Throughout the first ten months of the fiscal year 2024 (10MFY24), the country managed to obtain a total of $7.14 billion in external financing, significantly less than the annual budget estimate of $17.62 billion.
In April, the government received a substantial loan of $117.39 million for non-project aid, aimed at providing program and budgetary support to help restructure the economy. Over 10MFY24, loans for non-project aid amounted to $4.84 billion.
The Ministry of Economic Affairs noted Pakistan’s continued reliance on foreign commercial borrowing, which amounted to $107.95 million in April and $889.43 million in 10MFY24. This was primarily facilitated through the Naya Pakistan Certificate.
Notably, no funds were secured from foreign commercial banks in 10MFY24, despite a budget estimate of $4.5 billion for the fiscal year.
Disbursements from bilateral and multilateral development partners remained strong, totaling $129.29 million in April and $3.74 billion in 10MFY24. Although these inflows helped bolster foreign exchange reserves, they fell short of the government’s budget estimates.
Multilateral sources provided nearly $121.61 million in April and $2.87 billion in 10MFY24. Among these, the International Development Association-World Bank (IDA) led with $61.73 million in April, followed by the Asian Development Bank (ADB) with $42.78 million.
The International Bank for Reconstruction and Development (IBRD) contributed $8.52 million, and the Asian Infrastructure Investment Bank (AIIB) provided $6.33 million. Cumulatively, IDA’s disbursements totaled $1.35 billion, ADB’s $708.30 million, and AIIB’s $309.95 million.
Bilateral development partners contributed $7.68 million in April and $877.76 million in 10MFY24. In April, Germany provided $3.10 million, Korea $1.80 million, France $1.77 million, and the USA $1.01 million. Over 10MFY24, Saudi Arabia’s Oil Facility dominated bilateral disbursements with $595.18 million.
While foreign assistance has been crucial in maintaining financial stability, the shortfall compared to budget estimates highlights the need for improved fiscal strategies and diversified financing avenues to achieve Pakistan’s economic goals.
