Amid the financial challenges facing Pakistan’s economy, external financing has once again become the center of attention. According to the latest report of the Economic Affairs Division, Pakistan received more than $ 3 billion in external loans, investments and grants in the first five months of the current fiscal year, which shows a significant increase compared to the previous year.
According to the report, this amount received through international financial institutions, friendly countries and various financial schemes is being considered as a temporary support for the country’s economy. The Economic Affairs Division says that the value of external financing obtained during July-November is Rs 858.27 billion in Pakistani currency, which is Rs 117 billion more than the Rs 741 billion received in the same period of the previous fiscal year.
The document states that international financial institutions, including the World Bank, Asian Development Bank (ADB) and Islamic Development Bank, provided a total of $ 1.25 billion. In addition, various countries, especially Saudi Arabia, provided $ 807.6 million.
As a significant development, an investment of $ 965.9 million was made under the Naya Pakistan Certificate, which the government is calling a manifestation of the confidence of Pakistanis abroad. According to officials, this investment is also proving to be helpful for foreign exchange reserves.
According to the Economic Affairs Division, more than Rs 531 billion was obtained under non-project aid, including more than Rs 273 billion for budget support. Experts say that budget support loans help meet immediate financial needs, but their repayment may put pressure on the budget in the future.
The report states that the Islamic Development Bank provided a short-term loan of Rs 109 billion, while Saudi Arabia received an oil facility of Rs 141.76 billion in five months, which is equivalent to $ 500 million. This facility is considered important for oil imports.
Regarding the development sector, the document reveals that more than Rs 327 billion was borrowed for various projects, including infrastructure, energy and social sector projects. In addition, Pakistan also received grants of Rs 15.32 billion during this period.
According to the Economic Affairs Division, the government has set a target of obtaining a total of about $ 20 billion in external financial assistance for the current fiscal year. Economic analysts say that while this financing may bring stability in the short term, increased exports and fiscal discipline will be essential for lasting improvement.
