Pakistan receives $3.52 billion in loans and grants in first quarter of FY24

WEB DESK: In the initial quarter of the fiscal year 2023–24, Pakistan acquired a substantial financial boost, garnering a total of $3.52 billion in financial assistance.

This comprised $3.49 billion in loans and $34 million in grants, marking a notable surge of 58 per cent when compared to the previous year’s $2.234 billion loan.

This revelation comes from a detailed report released by the Economic Affairs Division, outlining the international financial support received by Pakistan from July to September 2023.

Notably, Saudi Arabia contributed significantly by offering a $2 billion loan in the form of time deposits. Additionally, China’s National Aerotechnology Corporation extended a substantial aid package of $500 million.

Furthermore, various international financial institutions provided significant support, contributing a total of $490 million in loans. Additionally, Pakistan received $324 million in financial assistance from several other countries, diversifying its funding sources.

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It’s worth noting that this assistance is in addition to the initial $1.2 billion tranche received from the International Monetary Fund (IMF) earlier in the fiscal year.

Looking ahead, Pakistan anticipates total external financial assistance of over $17.38 billion in the current financial year, indicating a positive trajectory for the nation’s economic outlook.

In related developments, Pakistan is set to engage in discussions for the second tranche of the IMF bailout, with negotiations expected to take place in the final week of October.

These financial injections are poised to play a pivotal role in bolstering Pakistan’s economic stability and fostering growth in various sectors.