ISLAMABAD - Pakistan had borrowed $10.8 billion from multilateral and bilateral sources during previous year to repay previous loans and financing current account deficit.

According to the latest data of Economic Affairs Division (EAD), the country had received over $10.8 billion as foreign assistance in the year 2018-19. The PML-N government had budgeted foreign assistance of $9.69 billion for 2018-19. However, the PTI government had exceeded the budgeted level by more than one billion dollars mainly due to the massive repayment against previous loans.

The aforesaid figure of $10.8 billion had not included $5.5 billion that Pakistan borrowed from Saudi Arabia, United Arab Emirates (UAE) and Qatar. Saudi Arabia had given $3 billion, UAE $2 billion and Qatar $500 million. Qatar would give further $2.5 billion to Pakistan, as it had committed to place $3 billion in SBP’s account on the request of government of Pakistan. The $5.5 billion received from friendly countries has been booked on balance sheet of the State Bank of Pakistan (SBP).

The government in overall had taken $16.3 billion loans from foreign sources during previous year. Federal Minister for Economic Affairs Hammad Azhar had already defended the massive loans taken by the incumbent government. The government had paid $9.1 billion as external debt repayment and servicing during fiscal year 2018-19, Azhar said on his social media account. Sharing figure, he said that net increase in external public debt stock of Pakistan in fiscal year 2018-19 was $2.5 billion. The volume of external debt was enhanced by $8.6 billion in financial year 2017-18. He said that net increase in total external debt and liabilities was $10 billion in FY18-19 as against 13.3 billion in FY 2017-8.

The EAD’s data showed that PTI government had heavily relied on commercial borrowing during previous fiscal year as it borrowed $4.1 billion from the commercial banks. The ministry of finance had projected to borrow $2 billion from the commercial banks during the last fiscal year. However, the amount of borrowing from commercial banks had exceeded by $2.1 billion. In commercial loans, the government had borrowed $2.2 billion from China Development Bank and $300 million from Industrial and Commercial Bank of China. Similarly, it had taken $242.5 million from Noor Bank of the UAE, $495 million from a consortium led by Credit Suisse, $554.3 million from Dubai Bank and $271.6 million from Ajman Bank.

According to the EAD data, the Asian Development Bank (ADB) disbursed $541.2 million in last fiscal year against the budgeted estimates of $1.4 billion. Pakistan received $2.19 billion from China in the fiscal year 2018-19 against the budgeted estimate of $840.99 million. USA disbursed $96.34 million, World Bank $652.75 million, UK $87.93 million, France $88.12 million, and Germany $15.23 million in the previous fiscal year. Saudi Arabia had provided $59.96 million and Japan $67.22 million during the year 2018-19.

The Islamic Development Bank (IDB) had given loan of (S-Term) $819.7 million during previous financial year. The IDB had activated its three-year $4.5-billion oil financing facility for Pakistan in July last year. The International Islamic Trade Finance Corporation (ITFC), a member of the IDB Group would roll over a loan of $4.5 billion to Pakistan in next three year, $1.5 billion in each fiscal year.