Pakistan received only $11.7 billion in foreign loans and grants in the first 11 months of fiscal year 2024 (July to May), far short of the annual target of $17.4 billion, a major slippage in increasing international financial support. Although Pakistan has achieved the revised target.


According to official data released by the Ministry of Economic Affairs (MEA), the country received about $40.3 million in foreign aid in May, up from $23.7 million in April, Dawn newspaper reported. Is.


It said the government could receive about $7.547 billion in foreign economic assistance (FEA) in the first 11 months of the current fiscal year, about 44 percent of the annual budget target amid limited borrowing opportunities. Yes, this is in the context of poor credit ratings and adverse conditions in global financial markets despite support from the International Monetary Fund (IMF).


This is in addition to $3 billion released by the IMF under the FEA Standby Arrangement (SBA) and $1 billion from the United Arab Emirates, which is accounted for separately by the State Bank of Pakistan (SBP). (SBP), thus total external remittances including the IMF and the UAE reached $11.7 billion in 11 months, roughly 67% of the target inflows for the full year.


However, officials claim that better credit and trade management have reduced foreign aid needs this year, so that the target for foreign economic aid is now $17.62 billion set in the 2023-2024 budget. Instead, it has been reduced to around $11 billion, based on a current account deficit lower than the budget estimate.


In its monthly foreign economic assistance report for May, released with an unusual fortnight's delay, the Ministry of Economic Affairs said the country received 17.62 billion in the first 11 months of fiscal 2024 (July-May). With $7.747 billion received against the annual target of $1 billion, this means that external remittances were more than 12.4 percent lower than $8.613 billion in the same period of the previous fiscal year, otherwise in line with the IMF. It was a very difficult period given the challenging relationship.

The main reason for the low income was the negative international environment and the country's poor credit rating, which made the international capital markets a no-go for Pakistan. In addition to the $1.5 billion in fresh bonds, the government has raised another $4.5 billion in foreign trade debt for the current fiscal year, with a $1.5 billion Eurobond project being delayed due to a low credit rating, the ministry report said. A budget was also kept which was not fulfilled.


In December 2023, the country received three major disbursements of $1.36 billion from three major multilateral institutions, including $63.8 million from the World Bank, $46.9 million from the Asian Development Bank and the Asian Infrastructure Investment Bank (AIIB). 25.5 crore through 2024, major foreign economic assistance in the 11 months of 2024 rose to $2.89 billion in July 2023, shortly after Pakistan reached an agreement with the IMF on a new short-term program, and again in April. 1.343 billion when the IMF released its final tranche of $1.1 billion on April 29.