Total provisional external inflows from multiple financing sources stood at $7.381 billion during July-April 2019-20 compared to $12.958 billion for the entire fiscal year which is around 57 percent of the budgeted amount.
According to the official data of the Economic Affairs Division (EAD), external inflows during the corresponding period of 2018-19 were $8.515 billion (88 percent) against the budgeted amount of $9.692 billion.
Relatively low disbursements during the fiscal year 2019-20 can be attributed to the outbreak of COVID-19 as the pandemic has completely halted the development activities across the country. Accordingly, every development project slowed down because of the lockdown in the country. However, ease in the lockdown by the Government may lead to an increase in project financing in the coming months, EAD stated.
The government budgeted foreign assistance of $12.957 billion for the current fiscal year including $2 billion foreign commercial loans. The data revealed that the government has already procured $2.073 billion from foreign commercial banks compared to $3.183 billion during the same period last year – around 28 percent of the total external loans of $7.381 billion procured during the first ten months (July-April) of 2019-20.
Bank of China disbursed $200 million in April. Earlier Dubai Bank disbursed $563.85 million, Ajman Bank $155.61 million, the consortium-led by Suisse AG, UBL, and ABL $205 million, Citibank disbursed $148.19 million, China Development Bank $700 million and Standard Chartered Bank (London) $26.50 million.
Out of $7.381 billion, the government received $2.324 million or 31 percent in the form of program/budgetary support aid from Asian Development Bank and World Bank.
The budget estimates of foreign economic assistance through bilateral and multilateral development partners for 2019-20 were $4.758 billion. During the first ten months of the current fiscal year 2019-20, an amount of $4.529 billion was received from multilateral and from bilateral development partners.
Amongst the multilateral development partners, Asian Development Bank provided $2.253 billion against $1.1 billion budgeted for the current fiscal year, Islamic Development Bank $879 million, and World Bank $505 million. While from bilateral sources, the leading donors were China ($487 million), UK ($128 million), Korea ($94 million) and USA ($59 million).
During July – March 2019-20 total servicing of external public debt was $6.530 billion against the budgeted amount of $10.423 billion for the entire fiscal year. Of which, $5.117 billion (78 percent of total external public debt servicing) was repaid as principal and $1.413 billion (22 percent) as interest on the outstanding stock of external public debt.
During the first nine months of the current fiscal year, the government settled $1.772 billion worth of foreign commercial loans and repaid $1 billion worth of Sukuk issued in December 2014. The government has also repaid $1.635 billion to multilateral and $710 million worth of external loans of bilateral development partners.
For the period July-March, 2019-20, net transfers to the government were $1.189 billion.