Pakistan secures $5.4bn inflows over two months
On the back of an International Monetary Fund (IMF) stimulus, Pakistan’s foreign financing inflows rose over six times to $5.41 billion in the first two months (July-August) of the current fiscal year, against just $439 million during the same period last year. In its monthly report on Foreign Economic Assistance (FEA), the Economic Affairs Division (EAD) said on Tuesday the total FEA in July and August amounted to $3.2bn, compared to $439m during the same period last year, showing an increase of 630 per cent. Total inflows in August stood at $316m, while the maximum $2.89bn assistance came in July. This is in addition to the $1.2bn released by the IMF on July 13 as first tranche of the $3bn Standby Arrangement and $1bn by the UAE separately accounted for by the State Bank of Pakistan. The bulk — $2bn — of foreign loans reported by the EAD came from Saudi Arabia as time deposit, followed by $508m guaranteed loan to Pakistan Air Force by China National Aero-Technology Import & Export Corporation. The remaining inflows included $336m from multilateral agencies and $221m from bilateral lenders. Another $141m flowed in from overseas Pakistanis in Naya Pakistan Certificates.