During the fiscal year 2022-23 (FY23), the federal government borrowed $10.844 billion from various financing sources, witnessing a decline of approximately 37% compared to the $16.974 billion borrowed in the same period of FY22.
For FY23, the government had budgeted foreign assistance of $22.817 billion, including $7.5 billion from foreign commercial banks. However, the $10.844 billion borrowing does not include the $6 billion rollover of deposits from friendly countries (China and Saudi Arabia) and the re-financing of a Chinese loan worth $1.3 billion.
The Economic Affairs Division data shows that during FY23, the country borrowed $2.206 billion from foreign commercial banks, with $1.306 billion borrowed in June 2023. This fell short of the budgeted $7.472 billion borrowing from foreign commercial banks by $5.266 billion. In the same period of FY22, the country received $2.4.863 billion from foreign commercial banks.
The country received $1.166 billion from the International Monetary Fund (IMF) during FY23, and when excluding the IMF loan, the total inflows for the period amounted to $9.678 billion, indicating a slowdown compared to the $16.974 billion received during the same period of FY22.
During June 2023, the government procured $2.231 billion in external loans, with $788.97 million received under the “Naya Pakistan Certificate” category during the fiscal year, including $46.03 million in June 2023.
The country received $5.224 billion from multilateral sources, $1.458 billion from bilateral sources, and $1.166 billion from the IMF during FY23. Non-project aid amounted to $8.779 billion, including $7.419 billion for budgetary support, while project aid reached $2.064 billion.
Among the disbursing agencies, the Asian Development Bank (ADB) disbursed $2.266 billion during the period, lower than the budgeted $3.202 billion, with $229.91 million disbursed in June 2023.
China disbursed $128.03 million during FY23, while Saudi Arabia disbursed $1.182 billion for the oil facility against the budgeted $800 million. The US disbursed $31.13 million, Korea disbursed $27.42 million, and France disbursed $33.81 million during the period.
The International Development Association (IDA) disbursed $1.907 billion against the budgeted $1.388 billion, including $429.33 million in June. The International Bank for Reconstruction and Development (IBRD) disbursed $290.06 million against the budgeted $1.246 billion, and the Islamic Development Bank disbursed $16.81 million against the budgeted $3.38 million. The Islamic Development Bank (Short-term) disbursed $161 million, the Asian Infrastructure Investment Bank disbursed $558.96 million, and the Economic Cooperation Organization (Trade Bank) disbursed $64.59 million in FY23.