ISLAMABAD: Pakistan’s ability to access dollar loans has declined significantly as foreign borrowing has fallen by 50 percent at a time when Islamabad is desperately hoping for more inflows.
Citing data released by the Economic Affairs Division (EAD) on Monday, top government sources confirmed that the government received foreign remittances of only $415.99 million in November 2023 as against $846.76 million in the same month of the previous fiscal year. was able to obtain loans which show a reduction of about 50%.
Ironically, Islamabad has so far failed to earn even a single penny through foreign trade loans despite making plans to earn four and a half billion dollars during the current financial year keeping in mind the high interest rates in international markets.
Despite the concept of one and a half billion dollars, the government failed to initiate any international bond.
If compared to the five months (July-November) of 2023-24, Pakistan received a total of $4.285 billion in foreign loans as against $5.11 billion in the same period of the previous financial year.
However, the Economic Affairs Division did not include the $1.2 billion received from the International Monetary Fund after approving the $3 billion Standby Arrangement Program.
After including the IMF tranche, total dollar inflows during the first five months of the current fiscal year will reach $5.5 billion.
