As per the report, issued by the Ministry of Economic Affairs (MEA) about foreign loans, the government has borrowed loans, worth $12.022 during the period from July to January in the current fiscal year.
The government had targeted to borrow $14.088 billion in the ongoing fiscal year. It means, about 86 percent of the target of borrowing, set for this year has been met. $12.022 billion does not include the $1.2 billion of foreign debt in the Naya Pakistan Certificate from Pakistanis, living abroad and $1 billion, Pakistan received from International Monetary Fund recently.
Around $9.5 billion have been taken for non-productive purposes in seven months of this financial year against the set target of $12.16 in the whole year. The report shows that about 80 percent of loans have been taken for the imports of oil, budget financing, and building up the foreign exchange reserves.
From the report of the Ministry of Economic Affairs, it is clear that the amount of foreign loans has been increasing since the fiscal year 2018-19 when $10.59 billion were borrowed, in 2019-20, $10.662 billion were taken and in the fiscal year 2020-21, $14.28 billion were borrowed as foreign loans.
$3.329 have been taken from multilateral lenders, $3 billion of time deposit from Saudi Arabia, $2.623 billion from private banks, and $2.041 billion are of international bonds. $196 million have been taken from bilateral lenders and $179 million are in the form of grants.
Moreover, $1.68 billion have been taken as the support of foreign-funded projects and $832 million have been received for publicly guaranteed loans. $2.04 has been taken through international bonds against the set target of 3.5 billion. $2.623 billion have been borrowed from commercial banks against the set target of 4.87 billion during the whole fiscal year.
From the multilateral sources, $1.09 have been received from Asian Development Bank, $1.086 billion have been borrowed from Islamic Development Bank and $847 million have been received from the World Bank.
From bilateral sources, China gave $100 million of loans, and the Unite States of America gave the loan of $45 million. $196 million have been taken from bilateral sources during the first seven months of the current fiscal year.