Pakistan has obtained $7.76 billion in foreign economic aid, including grants and loans, during the current fiscal year, as the Economic Affairs Division reported.
The amount comprises $4.02 billion from multilateral sources like the Asian Development Bank (ADB) and the European Union and $1.06 billion from various countries.
The “Disbursement Report March 2022” breakdown reveals that the International Monetary Fund (IMF) has contributed $1.17 billion to Pakistan. Additionally, the ADB has provided $1.94 billion, the International Development Association has contributed $1.1 billion, and the Asian Infrastructure Development Bank has given $546.75 million.
Among supportive countries, Saudi Arabia has given the most financial aid, with $100 million and an oil facility of $782.28 million. Other contributing countries include China ($54.93 million), Japan ($34.19 million), France ($28.97 million), and the United States ($24.27 million).
Pakistan has also received $900 million in loans from commercial banks and $612.3 million through Naya Pakistan Certificates. As of April 14, the nation’s foreign exchange reserves have sharply decreased to $4.43 billion, covering less than a month of imports.
Pakistan’s $350 billion economy is struggling due to financial challenges and delays in securing an agreement with the IMF to release vital funds to avoid default risks. Since January, the government has been negotiating with the IMF to resume the $1.1 billion loan tranche, part of a $6.5 billion Extended Fund Facility (EFF) agreed upon in 2019.
Pakistan is nearing a loan agreement, as it has presented a plan to the IMF to secure an additional $3 billion to close the financing gap. A deal with the IMF will also open other bilateral and multilateral financing options for Pakistan to bolster its foreign exchange reserves.
