Loan inflows remain below quarter of projection

Despite the International Monetary Fund (IMF) onboard, Pakistan received about $4.285 billion in foreign loans, less than one-fourth of the annual budget estimate in the wake of poor credit rating and adverse conditions in the global financial markets. In its monthly report on Foreign Economic Assistance (FEA), the Economic Affairs Division (EAD) on Monday said the country received just $4.285bn in the July-November period of 2023-24 against its annual target of $17.6bn. This meant foreign inflow was down by more than 16pc when compared to $5.115bn in the same period last year which was a tough period given the challenging relationship with the IMF. The lower inflows were mainly because of the adverse international environment and the country’s poor credit rating, making international capital markets a no-go area for Pakistan. Therefore, Pakistan has deferred its plan to launch a $1.5bn Eurobond because of higher interest rates in the international capital markets and the country’s low credit rating.