409 million dollars borrowed from commercial banks
ISLAMABAD Nov 23,2021
The government is relying heavily on loans from foreign commercial banks to boost the flow of dollars and out of 692 million dollars in October, 409 million dollars were borrowed from commercial banks.
In the first four months of the current financial year, loans accounted for the bulk of the total dollars received.
The growing reliance on foreign commercial loans shows that the government is working hard to keep the dollar flowing in the face of pressure from external accounts. At a time when the IMF agreement has not yet been finalized, the government has no choice but to choose the easy way out and increase the flow of dollars by borrowing from local and international commercial banks.
In the first four months of the current fiscal year (July-October), the government received 3.898 billion in foreign loans and grants.
In the same period of the last financial year 2020-21, foreign loans and grants of 3.225 billion were received. Official figures from the Economic Affairs Division show that in October, 2021, the government borrowed 692.5 million from multilateral and bilateral lenders.
Pakistan borrowed 122 million from bilateral lenders, with China providing the largest loan at 732.5 million. The United States came in second with 25.9 million. The government issued Eurobonds in July 2021, raising more than one billion dollars.