Pakistan's Borrowing Drops 27% in First Seven Months of FY25

Pakistan's Borrowing Drops 27% in First Seven Months of FY25

Pakistan borrowed $4.585 billion from various financing sources during the first seven months (July-January) of the current fiscal year 2024-25, a 27 percent decrease compared to the $6.31 billion borrowed during the same period last year, according to data from the Economic Affairs Division (EAD).

This figure does not include the first tranche of $1.03 billion received from the International Monetary Fund (IMF). Adding the IMF inflows, the total would reach $5.585 billion for the first seven months of the fiscal year.

Key Points:

  • The government budgeted $9 billion in time deposits from Saudi Arabia ($5 billion) and China ($4 billion) for FY25, but no funds were received under this head in the first seven months, and there was no reported assistance from the UAE.

  • In December 2024, Saudi Arabia extended a $3 billion deposit with Pakistan for another year, not reflected in the EAD data.

  • Pakistan revised its external financing estimates from $19.393 billion to $14.393 billion for FY25, including $14.216 billion in loans and $176.29 million in grants, excluding IMF funding.

  • Of the $3.779 billion budgeted from foreign commercial banks, only $500 million was received by January, with no disclosure on the lender. There were no borrowings from commercial banks in November.

No funds were raised from international bond issuance, despite a $1 billion target for FY25. The “Naya Pakistan Certificate” raised $1.126 billion, including $199.23 million in January.

  • Multilateral lenders provided $2.322 billion from July to January, including $458 million in January, while bilateral sources disbursed $329.10 million in total, with $12.68 million received in January.

  • Non-project aid amounted to $2.54 billion, with $1.312 billion for budgetary support, while project aid reached $2.045 billion.

  • The Asian Development Bank (ADB) disbursed $1.048 billion, including $139.73 million in January, against a budgeted $1.651 billion for FY25.

  • The International Development Association (IDA) provided $573.85 million, while the International Bank for Reconstruction and Development (IBRD) disbursed $201.50 million. The Islamic Development Bank (IsDB) released $265.7 million in short-term financing.

  • The Asian Infrastructure Investment Bank (AIIB) disbursed $60.22 million, and the International Fund for Agricultural Development (IFAD) provided $26.12 million.

  • China disbursed $99.17 million, Saudi Arabia provided $12.37 million, the USA released $40.05 million, and France exceeded its budgeted commitment by disbursing $102.57 million.
    Image by Pro Pakistani 

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