ISLAMABAD – Despite the relaunch of the International Monetary Fund’s lending program, Pakistan has yet to receive major funding from bilateral and multilateral sources in the first two months (July and August) of the current fiscal year amid decline in foreign exchange reserves.

Pakistan has received only $439.32 million from international financial institutions and other countries in the period of July and August of the current financial year, when the country needs dollars to improve its reserves and the value of its currency. The country had received 1.16 billion dollars from the IMF but it is not included in the data of the Ministry of Economic Affairs. Ahead of the IMF board meeting (August 29), it was considered that the revival of the IMF program would pave the way for obtaining loans from other international creditors.

Meanwhile, officials said some loans were in the pipeline which would be disbursed in the coming weeks.

The Minister of State for Finance and Revenue, Dr Aisha Ghous Pasha, said last Wednesday that Pakistan expects to receive $1.5 billion from the Asian Development Bank (AfDB) and $500 million from the Asian Infrastructure Investment Bank (AIIB). Meanwhile, some friendly countries would also make investments in Pakistan.

By July-August this year, the government had received $233.07 million from bilateral sources and $206.25 million from multilateral sources, bringing the overall monthly borrowing to $439.32 million. The breakdown of the $233.07 million received from bilateral sources showed that Saudi Arabia had provided a deferred oil payment facility worth $200 million in July and August, compared to an annual projection of $800 million. of dollars.

The United States paid $8.3 million, China $4.3 million, France $3.21 million, Germany $0.33 million, Japan $0.68 million and Korea $15.65 million in the first two months of the current fiscal year.

In multilateral sources, the World Bank‘s IDA disbursed $100.64 million, the Asian Development Bank (ADB) $70.36 million, and the International Bank for Reconstruction and Development (IBRD) $22. $33 million in the first two months of the current fiscal year.

The Asian Infrastructure Investment Bank (AIIB) has released only $2.47 million for Pakistan, according to data from the Ministry of Economic Affairs.

The government has planned to receive $22.817 billion from international sources in the current fiscal year. Pakistan would receive $1.039 billion from bilateral sources and $7.675 billion from multilateral sources in the year 2022-23. Meanwhile, the country would generate $2 billion through bond issuance in the international market and $3 billion from the IMF. Similarly, it would borrow $7.5 billion from commercial banks and $1.63 billion from the Naya Pakistan Certificate. Apart from $22.817 billion, Pakistan secured financing worth $4 billion from friendly countries, which was a prerequisite for reviving the stalled IMF program. The country would receive $2 billion from Qatar, $1 billion in oil financing from Saudi Arabia and a similar amount of investment from the United Arab Emirates (UAE).