As you know that the dollar rates rise day by day, in this article we discuss that Pakistan ability to bring about dollar inflows through loans grants diminishes. Pakistan has received dollar inflows in the shape of loans and grants to the tune of $13.5 billion in the first 11 months (July-May) of the current revenue year.
Islamabad
In Islamabad Pakistan’s ability to bring about dollar inflows in the shape of loans and grants has diminished as the government could acquire only $505 million in loans/grants in May 2022 against $699 million in the same month of the last financial year.
Islamabad’s helplessness of obvious a staff-level agreement with the International Monetary Fund has literally blocked its external dollar loans and grants, so dollar loans and grants decreased by around $200 million alone in May 2022.
In totality, Pakistan has received dollar inflows in the shape of loans and allows to the tune of $13.5 billion in the first 11 months (July-May) of the current revenue year whereas the government could not muster up a single penny through commercial borrowing in May 2022.
According to official data released by the Economic Affairs Division (EAD) on Tuesday, the country had received foreign loans and allows of $13.5 billion in the first 11 months against official estimates of $14.008 billion for the whole financial year 2021-22 ending on June 30, 2022. The country had obtained $12.3 billion dollar inflows in the shape of loans and grants in the same period of the last revenue year 2020-21.
Now the government will have to generate another $500 million in June 2022 for meeting the budgetary target of $14.008 billion envisaged for the outgoing revenue year. The official data shows that the country obtained $505.6 million in May 2022 whereby the largest chunk of $194 million was raised through guaranteed loans. Multilateral creditors provided loans of $204 million and bilateral creditors $107.23 million.
As the International Monetary Fund programme stalled, disbursement of loans from multilateral and bilateral creditors slowed down and Islamabad had no other option but to seek loans from commercial banks.
