Islamabad, Aug 27: Pakistan is facing major setbacks in obtaining outside funding since the International Monetary Fund (IMF) is yet to approve a $7 billion rescue plan.
Due to this delay, money from other nations and international financial organizations has been moving more slowly, which has caused a shortfall in external financial support in the first month of the current fiscal year.
Pakistan received $436.3 million in foreign financial aid in July, which is barely 2.2% of the $19.21 billion objective for this fiscal year, according to official statistics from the Economic Affairs Division. In sharp contrast, Pakistan was able to get $2.89 billion in external loans during the same period last year.
According to the breakdown of the monies received, $201 million came from international financial institutions, and $127.7 million was acquired through the Naya Pakistan Certificate.
The Asian Development Bank (ADB) contributed more than $54 million, the World Bank lent $118.8 million, and China gave $96.76 million. Over $20 million was supplied by the International Bank for Reconstruction and Development (IBRD).
Furthermore, $107.6 million in loans were donated by other nations last month. Saudi Arabia contributed $2.69 million and Germany lent $3.5 million. Additionally, Pakistan received grants totaling more than $1 million, the largest of which came from the US at $4.442 million.
According to the Economic Affairs Division, Pakistan received loans totaling $425.9 million for a range of projects during this time. The nation’s capacity to obtain the essential external financial aid, which is critical for preserving economic stability, is being negatively impacted by the continuous delay in the IMF’s final approval.
