Government borrows $9.17 billion from international lenders in six months

The federal government borrowed $9.17 billion from international financial institutions and countries in the first half of the 2021-22 fiscal year. External lending for the same period last year was $5.67 billion.

External borrowing increased by $3.5 billion over the past six months.

The government received $4.5 billion in loans in December alone, documents available with the SAMAA TV show.

The amount includes $3 billion deposited by the Saudi Development Fund with the State Bank of Pakistan.

International financial institutions have lent $2.826 billion to Pakistan over the past six months, documents show.

The Asian Development Bank provided over $1 billion, the World Bank $807 million and the Islamic Development Bank $800 million.

The government also raised $1 billion by floating euro bonds. It has secured commercial loans totaling $2 billion at higher interest rates from Dubai Bank and other banks.

China, France, Germany, Japan and Korea provided $93.8 million in bilateral loans while Pakistan received an additional $15.8 million in grants.

The Ministry of Finance claims that external loans have been used for budget financing, repayment of older loans, several development and reform projects, and to increase foreign exchange reserves.

The government had estimated that it would receive $10.36 billion in external loans in the 2021-22 financial year, but it has already borrowed 90% of the amount in the first half.

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