Govt gets a paltry $8.1bn in financing

Without the IMF umbrella, Pakistan’s external financing pipeline appeared drying up as it received 38 per cent lower inflows — only $8.1 billion in the first 10 months (July-April) of the current fiscal year against over $13bn in the same period last year. The pace of dwindling inflows could also be seen from the fact that $8.1bn receipts in 10 months of this fiscal year stood at just 35.5pc of the $22.8bn full-year budget target — implying a constant precarious position of the foreign exchange reserves despite tight import curbs. The foreign assistance so far suggests the annual target would be missed by a wide gap. In April alone, Pakistan received only $359m, down 57pc when compared to $842m in November 2022. In its monthly report on Foreign Economic Assistance (FEA), the Ministry of Economic Affairs said it received about $8.1bn foreign assistance in 10 months (July–April) compared to $13.03bn in the same period last year. As such, the total inflows at $8.1bn in the first 10 months amounted to just 35.5pc of the budget estimates of $22.817bn for the whole fiscal year. Last year (2021-22), the first 10-month inflows of $13.03bn accounted for 93pc of the annual budget estimates of $14.1. The MEA had finally reported the full fiscal year foreign economic assistance at $16.975bn in 2021-22.