Pending IMF $7 billion bailout package delays external funding for Pakistan

This delay has slowed down the flow of funds from other international financial institutions and countries, resulting in a shortfall in external financial support during the first month of the current fiscal year.

According to official documents from the Economic Affairs Division, Pakistan received only $436.3 million in external financial assistance in July, which represents just 2.2% of the $19.21 billion target for this fiscal year. This is a stark contrast to the same period last year, when Pakistan secured $2.89 billion in external loans.

The breakdown of the received funds shows that $127.7 million was obtained through the Naya Pakistan Certificate, while international financial institutions provided $201 million.

Among these institutions, the World Bank lent $118.8 million, China provided $96.76 million, and the Asian Development Bank (ADB) contributed over $54 million. The International Bank for Reconstruction and Development (IBRD) provided more than $20 million.

Additionally, various countries contributed $107.6 million in loans last month. Germany lent $3.5 million, while Saudi Arabia provided $2.69 million. Pakistan also received grants totalling over $1 million, with the United States providing the largest grant of $4.442 million.

The Economic Affairs Division has reported that a total of $425.9 million was loaned to Pakistan for various projects during this period. The ongoing delay in the IMF's final approval is adversely affecting the country’s ability to secure necessary external financial assistance, which is crucial for maintaining economic stability.

SuchTV, 27 Aug, 2024 Visit to News Source Webpage

Pending IMF $7 billion bailout package delays external funding for Pakistan

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