ISLAMABAD (Eshfak Mughal):- The Federal Govt led by Prime Minister Shehbaz Sharif has only obtained $8.12 billion external financing against the total target of $22.81 billion during the first ten months (July-April) of the current fiscal year due to suspension of the International Monetary Fund (IMF) loan program.
The Ministry of Economic Affairs Division (EAD) has issued monthly bulletin of external loans and grants. According to the report, the federal government has obtained $358.6 million during the last month (April 2023) from different external sources. After this loan and grants, the govt has secured $8.12 billion total external loans during the ten months of the current fiscal year.
In April 23, the government has obtained $100 million from Saudi Arabia through oil facility on deferred payments, $ 72.96 million from China, $70.47 million from World Bank through IDA program, $64.93 million through Naya Pakistan Certificates, $35.20 million from Asian Development Bank.
The data shows that the government has obtained only $8.12 billion during the ten months of the current fiscal year from external resources to bridge the current account deficit.
It is pertinent to mention here that Shehbaz Sharif Govt has projected $22.81 billion external financing needs for current fiscal year. Contrary to that, the government could only secure 36 percent estimated external financing during the ten months mainly due to suspension of the IMF loan program.
The data shows that the govt has projected $7,472 billion external financing from commercial banks but it could only secure $900 million in ten months. The govt has estimate to get $2.0 billion through floating bonds in international market, however, it could not float bonds in the international market mainly due to negative rating from different international rating agency and suspension loan program of IMF since Oct 2022.
The govt has obtained $1.16 billion against the total estimated amount of $3 billion from the IMF. It is pertinent to mention here that the govt could only complete one review meeting with IMF and ninth review meeting is still pending due to endless demands of the funds.
Pakistan has obtained $4.13 billion from multilateral sources in ten months against the total estimated amount of $7.67 billion for the current fiscal year. The country has received $5.38 billion in ten months against the total estimated amount of $8.71 billion for the current fiscal year.