{"id":202093,"date":"2025-06-21T08:41:12","date_gmt":"2025-06-21T08:41:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/202093\/"},"modified":"2025-06-21T08:41:12","modified_gmt":"2025-06-21T08:41:12","slug":"pakistan-gets-20bn-in-external-assistance-business","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/202093\/","title":{"rendered":"Pakistan gets $20bn in external assistance – Business"},"content":{"rendered":"

\u2022 Surpasses target for FY25 in first eleven months
\u2022 Includes $6.89bn in fresh inflows; rest are rollovers from China, Saudi Arabia and UAE<\/p>\n

ISLAMABAD: Pakistan secured nearly $20bn in foreign loans and grants during the first 11 months (July-May) of 2024-25, surpassing the annual target of $19.2bn set for the fiscal year ending June 30.<\/p>\n

Almost half of this amount comprised legacy rollovers from China, Saudi Arabia, and the United Arab Emirates, while fresh loans and grant inflows totalled $6.89bn \u2014 about 9pc lower than the same period last fiscal year.<\/p>\n

According to the Economic Affairs Division\u2019s (EAD) monthly report<\/a> on Foreign Economic Assistance (FEA) released on Friday, the total FEA during July-May stood at $6.89bn, compared to $7.55bn in the corresponding period of last year, against a target of $19.4bn for 2024-25 and $17.6bn last year.<\/p>\n

This figure does not include approximately $2bn received from the International Monetary Fund (IMF) in two tranches<\/a> under the ongoing $7bn Extended Fund Facility (EFF), which is recorded separately by the State Bank of Pakistan (SBP).<\/p>\n

Including rollovers and IMF disbursements, total external assistance reached $20bn during the 11-month period. This comprised $3bn each in rollovers from Saudi Arabia<\/a> and China, and $2bn from the UAE. Pakistan\u2019s total annual rollover portfolio from these three countries stands at approximately $12.7bn in the form of safe deposits and loans, leaving net international reserves (NIR) at around $3bn.<\/p>\n<\/p>\n

The EAD noted that inflows of foreign economic assistance dropped by 8.7pc to $6.89bn, largely due to delays in the IMF programme, which caused many commercial lenders to remain cautious. In comparison, inflows during the same period last year totalled about $9bn, including IMF funds.<\/p>\n

In May alone, the EAD reported inflows of $797m, up from $576m in April, $555m in March, $237m in February, and $830m in January.<\/p>\n

Of the $6.89bn received, around $3.9bn was allocated for budgetary support or programme loans, while $2.98bn was directed toward project financing. During the same period last year, project aid stood at $2.56bn and programme loans at $4.99bn.<\/p>\n

Multilateral lenders contributed $3.37bn in the first 11 months of 2024-25, compared to $3.14bn last year. Bilateral disbursements declined sharply to $487m, down 45pc from $889m in the same period last year.<\/p>\n

The EAD reported receiving approximately $903m from foreign commercial lenders based in the UAE, indicating a slight rebound from last year when commercial financing had nearly dried up. However, this is well short of the $3.8bn target set for the year, reflecting the continued impact of the delayed IMF programme, challenging economic conditions, and associated credit rating concerns.<\/p>\n

The government had also aimed to raise $1bn through international bonds and projected $9bn in inflows from China and Saudi Arabia, including a $5bn time deposit from Saudi Arabia and $4bn in SAFE deposits from China. These funds are vital to bridging Pakistan\u2019s external financing gap under the IMF programme.<\/p>\n

In addition, Pakistan received $1.77bn from overseas Pakistanis via Naya Pakistan Certificates, up from $1.05bn in the same period last year. The Asian Development Bank disbursed $1.39bn during the period, up from $766m a year earlier, while the World Bank contributed $1.23bn.<\/p>\n

Published in Dawn, June 21th, 2025<\/p>\n","protected":false},"excerpt":{"rendered":"\u2022 Surpasses target for FY25 in first eleven months\u2022 Includes $6.89bn in fresh inflows; rest are rollovers from…\n","protected":false},"author":2,"featured_media":202094,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,1700,16,15],"class_list":{"0":"post-202093","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114720465478196052","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/202093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=202093"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/202093\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/202094"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=202093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=202093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=202093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}