News Column

Govt received $10.37b foreign loans during 2013-14

August 12, 2014

IMRAN ALI KUNDI



The PML-N government had heavily relied on the foreign loans/aid during its first year of the five years constitutional tenure, as the country received huge foreign inflows worth of over $10 billion during the last financial year 2013-14.

The cash-starved government, finding no other option to build the depleting foreign exchange reserves, had received loans/aids from various sources including IMF, World Bank, Asian Development Bank, Islamic Development, and several countries. Pakistan had received $10.37 billion during previous fiscal year, which had not only helped in building the countryís reserves but also facilitating in repaying the loans.

According to details gathered from the Finance Ministry and Economic Affairs Division, Pakistan had received $10.37 billion as foreign inflows, as over $6.67 billion had come as financial assistance, $2.2 billion from the International Monetary Fund (IMF) under $6.64 billion Extended Fund Facility (EFF) and $1.5 billion Saudi grant. The aforesaid amount did not include the amount received from United States under coalition support fund. The country had received about $722 million under the head of Coalition Support Fund (CSF)

Pakistanís foreign exchange reserves are currently stood at $14.306 billion, which enhanced due to the aforesaid loans/aids taken from various sources. The break-up of $14.306 billion showed that reserves held by State Bank of Pakistan are $9.277 billion and of Commercial Banks are $5.029 billion.

The figures of Economic Affairs Division (EAC) had showed that foreign inflows of over $6.67 billion during 2013-14 by surpassing the budgeted estimates of foreign assistance of $6.18 billion from bilateral and multilateral donors. The break-up of $6.67 billion showed that country had received that the Asian Development Bank (ADB) had disbursed $816.23 million in the fiscal year 2013-14 against the budgeted amount of $992 million.

The China was expected to be the largest single donor with a budgeted inflow of $1.365 billion however the country received about $516.72 million during the last financial year 2013-14. Meanwhile, the World Bank had disbursed $1.697 billion as compared to the budgeted amount of $1.124 billion. The Islamic Development Bank (IDB) had released a total of $408.85 million in 2013-14 against the budgeted amount of $500 million.

Japan has disbursed about $182 million during this period against the budgeted amount of $325.83 million, International Bank for Reconstruction and Development (IBRD) released about $163.18 million against budgeted estimates of $163.4 million, EU disbursed $13.61 million against $31.33 million and US disbursed about $118 million against the budgeted estimates of $212 million. The country received $55.48 million from Saudi Arabia during this period against the budgeted estimates of $19.85 million.

The International Development Association (IDA) projected to disburse $960.61 million in 2013-14; however the country received about $1.53 billion including $228.42 million in the month of June. Eurobonds generated $1.998 billion against the budgeted estimates of $500 million and loans of $322.5 million have been taken from the consortium of commercial banks during this period, which was not budgeted in 2013-14.

The government had budgeted about $50 million from Australia, Canada, Global Alliance for Vaccines and Immunization (GAVI), Turkey and UNDP for the fiscal year 2013-14; however no disbursement has been made under these heads, sources added.

Meanwhile, the government would continue to depend on the foreign assistance during ongoing financial year 2014-15. According to the budget documents, the government had budgeted $8.6 billion including grants and loans for the current fiscal year, which is higher by 21.6 percent than the revised estimates of 2013-14 and 50.7 percent higher than the budget estimates of 2013-14.


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Source: Nation (Pakistan)


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