Pakistan received critical $3.52bn in loans and grants in first quarter Q1 FY2023-24

Pakistan received $3.52 billion including $3.49bn in loans and $34 million in grants during the first three months of FY-2023-24,the Economic Affairs Division in a report said.

Saudi Arabia with a loan of $2 billion to Pakistan in the form of time deposits, China’s National Aero Technology Corporation with $508 million guaranteed loan to Pakistan Air Force (PAF),multilateral agencies inflows $490.48 and $324m from bilateral lenders. Another $204.5m flowed in from overseas Pakistanis in Naya Pakistan Certificates (NPCs).

The Foreign Economic Assistance (FEA), the Economic Affairs Division (EAD) said against its annual target of $17.6bn, total FEA in the July-September quarter amounted to $3.527bn when compared to just $2.234bn of the same period last year, an increase of 58pc. Total inflows recorded by the EAD in September came in at $321 million against $316m in August.

The government has estimated about $17.62bn in foreign assistance in the budget for the current fiscal year, including $17.385bn in loans and the remaining $235m in grants. As such, total loan disbursements in the first three months stood at $3.49bn and $34m in grants.

The EAD said that out of $3.527bn, the bulk of $2.65bn was received for budgetary support or programme loans and about $874m as project aid.Pakistan will hold talks for the second tranche of the International Monetary Fund (IMF) bailout likely in the last week of October.