Home HEADLINES Pakistan obtained $930 million loans during first quarter FY19

Pakistan obtained $930 million loans during first quarter FY19

Pakistan obtained $930 million loans during first quarter FY19

ISLAMABAD: Pakistan obtained $216 million in loans from international lenders in September 2018 of the financial year 2018-19.

According to available data, Pakistan in the first quarter (July-September) of the current fiscal year borrowed $930 million from different countries as well as banks.

The country’s foreign exchange reserves have dwindled sharply as they touched a critically low level of $8,089 million till 12 October 2018, barely providing an import cover of 1.5 months.

The document stated that the Q block has estimated to borrow $9.2 billion from different countries as well as international banks and through raising bonds in the international market.

According to Federal finance Minister Asad Umar, Pakistan needs $12 billion to cover the financial gap, hence that’s why Pakistan is approaching the International Monetary Fund (IMF).

China gave $2.80 million in September whereas Asian Development Bank (ASB) $26.94 million and other commercial banks lend $170 million to Pakistan.

Overall, commercial banks lent $240 million, Saudi Arabia $16.50 million, IDB S-term $200 million, IDA $37 million, France $31 million, China 299 million and ADB $82 million in the first three months of the current fiscal year.

Besides this, different countries including USA, Germany, ABD and MDFT have given $112 million grants in different projects to Pakistan from July to September.

The finance ministry estimated to take $394 million grants during the current fiscal year 2018-19.

Documents show that out of $930 million obtained in shape of loan and grants, $484 million were disbursed against projects aids and $240 million for budgetary support, $200 million short-term credit and $445 million for non-projects.