During the first eight months of the current financial year, Pakistan foreign debt has increased by 12.17 billion dollar.
During the first eight months of the current financial year (July 2021 to February 2022), borrowed more than 12.17 billion dollar from international sources, according to data from the Federal Ministry of Economic Affairs.
The reason for borrowing was to reduce the pressure on foreign exchange reserves due to repayment of old debts and current account deficit.
In the current financial year, 11.99 billion dollar out of 12.7 million dollar received from various foreign institutions and countries has been borrowed while more than 187.4 million dollar has been taken as grant aid.
The government had projected more than 14 billion in debt and aid to cover its budget deficit this fiscal year.
In the first eight months of the current financial year, Pakistan has received 84% of the loan,Of the 12.17 billion dollar received from foreign sources, 3 billion dollar came from Saudi Arabia.
According to the data, in February alone, Pakistan borrowed 154.4 million dollar from various financial sources.According to the report of the Ministry of Economic Affairs, a loan of 2.62 billion dollar has been obtained from foreign banks till February this year.
1.14 billion dollar Dubai Bank, 591.2 million dollar Emirates NBD Bank,Standard Chartered Bank London 487.2 million dollar and UBL over 340 million dollar from a mutual consortium of ABL and Swiss AG.
In addition, the Asian Development Bank provided 1.10 billion dollar and the World Bank provided 1.3 billion dollar,the Asian Infrastructure Investment Bank has lent 3 38.7 million, the Islamic Development Bank 1.18 billion dollar and China more than 100 million dollar.
On the other hand, Pakistan’s foreign exchange reserves have declined by more than 869 million dollar in one week.And for the first time in almost a year, the central bank’s (SBP) foreign exchange reserves have fallen below 15 billion dollar.