Pakistan secures diverse financial support for economic growth

In the first 10 months of the current fiscal year 2023-24, Pakistan borrowed a total of $7.142 billion from various financing sources, marking a decrease from the previous fiscal year. In April 2024, the country received $237.24 million, down from the same period in 2023.

Among the borrowing sources, $2 billion came from Saudi Arabia as a time deposit in July 2023. However, the expected funds from foreign commercial banks and bond issuance have not materialized as planned.

The government had budgeted $2.4 billion from the IMF for the year and received $3 billion under the Stand-By Arrangement. Including contributions from the UAE, the total inflows for the first 10 months would amount to $11.142 billion.

Despite the shortfall in expected funds, Pakistan aims to reach a target of $17.619 billion from various financing sources for the fiscal year. Notably, the 'Naya Pakistan Certificate' scheme brought in $889.43 million during the period.

From July to April 2023-24, Pakistan received significant amounts from multilateral and bilateral sources, with non-project aid playing a crucial role in budgetary support and project aid.

China, ADB, Saudi Arabia, USA, Korea, and France were among the key contributors during this period, with various international financial institutions also disbursing funds according to their budgeted amounts.

The borrowing trends in Pakistan for the current fiscal year highlight the country's efforts to secure financial support from diverse sources. While facing challenges in meeting all anticipated funding targets, Pakistan continues to explore avenues for economic stability and growth through strategic financial partnerships.