Pakistan secures $332.6 million in external financing in February

WEB DESK: According to the latest report from the Economic Affairs Division (EAD), Pakistan obtained external financing amounting to $332.6 million in February 2024 from various sources.

This financing is divided into $317.95 million in loans and $14.65 million in grants from multiple channels.

In the fiscal year 2024 (8MFY24), the total external financing reached $6.68 billion, compared to the annual budget estimate of $17.62 billion.

Notably, a $93.45 million loan was acquired by the government for non-project aid, aimed at providing program and budgetary support to reform Pakistan’s economy. Cumulatively, non-project aid loans reached $4.63 billion in 8MFY24.

Foreign commercial borrowing played a significant role, amounting to $91.74 million in February 2024 and $686.82 million in 8MFY24.

Disbursements from bilateral and multilateral development partners remained robust, totaling $240.86 million in February and $3.48 billion in 8MFY24, according to data provided by EAD.

These inflows bolstered foreign exchange reserves and contributed to economic stability. Multilateral sources provided approximately $226.37 million in February and $2.64 billion in 8MFY24.

Among them, the International Development Association-World Bank (IDA) led with $165.34 million, followed by the International Bank for Reconstruction and Development (IBRD) with $24.4 million.

Additionally, the Asian Development Bank (ADB) allocated $23.62 million, while the Asian Infrastructure Investment Bank (AIIB) and Islamic Development Bank (IsDB) contributed $6.51 million and $3.92 million respectively.

The International Fund for Agricultural Development (IFAD) supported with $2.49 million.

Cumulatively, IDA has contributed significantly with $1.22 billion, followed by ADB with $643.62 million and AIIB with $299.47 million in multilateral lending.

Bilateral development partners provided $14.49 million in February and $847.95 million in 8MFY24.

Notably, the USA, France, Germany, Japan, and Saudi Arabia were prominent contributors during the review period, with Saudi Arabia leading with disbursements of $595.18 million in 8MFY24, primarily through the Oil Facility.