Government borrows $11 billion in first 10 months of current fiscal year

• The government has borrowed $11 billion in the first 10 months (July to April) of the current fiscal year, according to official documents.

The numbers reflect a dramatic increase of 83% from the same period last year, when borrowing amounted to $6 billion. The aggregate external finance need for the current financial year stands at $19.39 billion.

The Economic Affairs Division said that in April alone, $4.5 billion was obtained and additional borrowing is likely in May and June.

The report said $8.31 billion was received under non-project aid and $2.75 billion under project aid in the July-April period, besides $120 million in awards.

The government has received more than Rs3,103 billion in local currency terms so far this fiscal year as compared to external finance of $570 million during the same period last year.

The IMF package is reported separately and is estimated at over $2.5 billion.

Key inflows included $1 billion of deferred oil payment facilities from Saudi Arabia and $480 million of loans from the Islamic Development Bank. Grants totalling about $218 million were received in April.

The report also says Pakistan relies on rollover arrangements, including deposits of $9 billion from Saudi Arabia and China, of which $3 billion from Saudi Arabia has already been rolled over. The UAE also reportedly received repayment of $3 billion in April.

Multilateral lenders including the Asian Development Bank, World Bank Group and Islamic Development Bank are likely to offer considerable financing through project and programme loans during the fiscal year.