Pakistan received a $ 1 billion loan from China in May: report

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  • Pakistan received a $ 1 billion guaranteed loan from a bilateral partner in May.
  • China helped boost external inflows to $ 12.134 billion in the first 11 months (July-May) of the current 2020-21 fiscal year.
  • The government expected to receive a total foreign capital inflow of $ 12.233 billion, mostly in the form of loans throughout the fiscal year.

ISLAMABAD: Pakistan provided a $ 1 billion loan in May, most likely from China. news reported on Friday.

China helped boost external inflows to $ 12.134 billion in the first 11 months (July-May) of the current 2020-21 fiscal year.

The government expected to receive a total foreign capital inflow of $ 12.233 billion, mostly in the form of loans throughout the fiscal year.

According to the publication’s report, it seemed that Islamabad could exceed its expected target of increasing external funding than it had envisaged on the eve of the latest budget.

Read more: Pakistan plans to ask China to write off debt on loan for energy projects: report

Total prepayments on foreign loans rose to $ 12.13 billion between July and May of the current fiscal year, versus $ 10.6 billion received for the entire 2019-20 fiscal year, senior officials said. news

The total external inflow in the form of multilateral loans, bilateral loans and the issuance of international bonds amounted to $ 10.195 billion in the first 10 months (July-April) of the current financial year.

But external inflows jumped by about $ 2 billion in May 2021, of which about $ 1 billion was received as a guaranteed loan from a “bilateral partner,” the source said.

It is likely that this bilateral partner is China, as it provided a guaranteed loan to help Islamabad build the infrastructure it desires.

Senior government officials said that “some of the payments were included in the inflow because the payments were made through guaranteed loans, so in subsequent periods they were included in the official inflow”.

Read more: China bailed out Pakistan to repay $ 1 billion debt to Saudi Arabia

Of the total provisional amount of $ 12.134 billion, Pakistan has received loans of $ 3.37 billion in the current fiscal year from multilateral lenders such as the World Bank, Asian Development Bank, Islamic Development Bank, Asian Infrastructure Investment Bank and others.

Preliminary bilateral payments increased to $ 1.531 billion in the first 11 months of this fiscal year. Payments from bilateral creditors totaled $ 367.5 million during the first 10 months (July-April) of the current fiscal year, but there was a sudden surge in May 2021 and rose to $ 1.531 billion between July and May 2020. 21.

Sources said it was one $ 1 billion guaranteed loan.

“Commercial banks provided external loans in the amount of US $ 3.732 billion during the period from July to May of the current fiscal year. The government received commercial external loans in the amount of USD 3.246 billion in the first 10 months (July-April) of the current fiscal year. This shows the Government received $ 476 million in May 2021. The government also raised $ 2.5 billion by issuing Eurobonds in the current fiscal year, ”the newspaper said.

Read more: Pakistan Announces New Visa Policy for Chinese Citizens

Throughout the last 2019-20 fiscal year, the government received $ 10.662 billion in external inflows from multiple funding sources, representing 82% of the annual budget estimate of $ 12.958 billion for the full fiscal year.

In the 2018/19 fiscal year, external inflows were $ 10.595 billion, which was approximately (109%) of the annual budget amount of $ 9.692 billion.

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