Pakistan is facing significant delays in obtaining external financial assistance due to the pending approval of a $7 billion bailout package from the International Monetary Fund (IMF). This delay has resulted in a decrease in funds from other international financial institutions and countries, leading to a shortage in external financial support during the first month of the current fiscal year. According to official documents from the Economic Affairs Division, Pakistan only received $436.3 million in external financial assistance in July, which is just 2.2% of the $19.21 billion target for this fiscal year. This is in stark contrast to the same period last year when Pakistan secured $2.89 billion in external loans. The breakdown of the received funds shows that $127.7 million was obtained through the Naya Pakistan Certificate, while international financial institutions provided $201 million.
The World Bank lent $118.8 million to various institutions. China provided $96.76 million, and the Asian Development Bank (ADB) contributed over $54 million. The International Bank for Reconstruction and Development (IBRD) provided more than $20 million. Additionally, various countries contributed $107.6 million in loans last month. Germany lent $3.5 million, while Saudi Arabia provided $2.69 million.
Pakistan also received grants totaling over $1 million, with the United States providing the largest grant of $4.442 million. The Economic Affairs Division has reported that a total of $425.9 million was loaned to Pakistan for various projects during this period. The ongoing delay in the IMF’s final approval is adversely affecting the country’s ability to secure necessary external financial assistance, which is crucial for maintaining economic stability.
