Pakistan receives $11.487 billion in foreign loans, grants in FY2018

KARACHI: Pakistan received $11.487 billion in foreign grants and loans from various multilateral and bilateral financing sources during the last fiscal year of 2017/18, finance ministry’s data revealed on Thursday.

Total commitments on account of grants and loans, however, amounted to $10.738 billion, the data compiled by the finance ministry showed.

Disbursement of loans stood at $10.918 billion, while around $569 million of grants were released during the last fiscal year.

The country got the biggest loan of $3.716 billion from foreign commercial banks. Alone China Development Bank and ICBC-China loaned one billion dollar each to the country. A consortium of Suisse AG, UBL and ABL lent $770 million. Other loans from foreign banks included $267 million from CitiBank, $200 million each from Bank of China, Noor Bank PJSC and SCB London. Dubai Bank also lent $79.2 million in FY2018.

The ministry’s data further showed that the country received $2.894 billion in loans and grants from different multilateral sources. Islamic Development Bank lent $987.22 million. Asian Development Bank disbursed $871 million in loan and $77.9 million worth of grants during the last fiscal year. International Development Association released $521 million. The International Bank of Reconstruction and Development loaned $249 million and disbursed grant of $48 million. International Fund for Agriculture Development loaned $16 million. Organization of the Petroleum Exporting Countries Fund loaned $4.22 million. Asian Infrastructure Investment Bank lent $26.04 million. Pakistan also got $35 million in grants from European Union and $1.88 million from the United Nations High Commissioner for Refugees.

Bilateral financing amounted to $2.377 billion in the last fiscal year. The biggest source of foreign loans was China with $1.811 billion followed by Japan ($65.9 million), France ($37.6 million), Saudi Arab ($37.44 million), Italy ($11.8 million), Germany ($4.6 million), Kuwait ($2.24 million) and Korea ($0.44 million). Grants from bilateral sources amounted to $406.5 million – the biggest from UK ($198 million) and US ($116.8 million). Others were from Saudi Arab ($30.7 million), Japan ($30 million), Germany ($18 million), Turkey ($10 million), France ($0.41 million) and Canada ($0.16 million).

The country received the annual inflows mainly to plug gaps in balance of payment and revenue and expenditures.

The finance ministry’s data showed around 61 percent of committed foreign economic assistance during the fiscal year of 2017/18 was to rectify balance of payments position and meet cash needs.

Project aids accounted for around 28 percent and around 12 percent was for short-term financing. A minute 0.018 percent was for Afghan refugees.

Total $2.973 billion was committed in foreign economic assistance for project aids in FY2018. Projects related to governance, research and statistics were pledged with $680 million of loan and $52.43 of grant.

A loan of $655 million was committed for transport and communication sector.

Foreign economic assistance commitment for energy and power sector included $467 million in loan and $0.10 million in grant.

Agriculture sector was committed with a loan of $405 million.

Physical planning and housing sector was pledged with $228.43 million of loan. Loan commitments for water works and supply included $200 million, temporary displaced persons ($114 million) and rural development and poverty reduction ($83 million). Health and nutrition got grant commitment of $10 million during the last fiscal year.