ISLAMABAD: Dollar inflows to Pakistan rose to $9.27 billion in the first half (July-December) period of the current fiscal after receiving a major chunk of $3 billion loan from Saudi Arabia in December 2021.
In December 2021 alone, Pakistan had received $4.525 billion dollar inflows as loans, and then a substantial $3 billion from Saudi Arabia on account of fixed deposits.
Despite receiving generous dollar inflows, the country's foreign exchange reserves held by the State Bank of Pakistan (SBP) continued to decline. Pakistan's total liquid foreign reserves stood at US$ 23.34 billion as of 14-January-2022. SBP had foreign exchange reserves of $17.035 billion and commercial banks had net reserves of $6.314 billion. During the week ended January 14-January 2022, SBP reserves decreased by $562 million to $17.035 billion due to external debt and other payments. In August 2021, foreign exchange reserves held by the SBP stood at more than $20 billion, but despite an inflow of about $5 billion from Saudi Arabia and the IMF, reserves still fell short by more than $3 billion.
Earlier, in the first five months (July-November) period, total dollar inflows were $4.699 billion, so a sudden jump of $4.525 billion in December 2021 increased dollar inflows to $9.2 billion in the first six months of the current year. Gave. financial year.
Due to the stalled program of the IMF, Islamabad is increasingly dependent on increasing dollar inflows from banks through commercial loans. Official data on foreign loans and grants shows that China provided bilateral guaranteed loans of $291.5 million in the first six months of the current fiscal year. Commercial Banks (NBP Bahrain) and others provided $301.522 million in the July-December period of fiscal year 2021-22.
Total bilateral loans and grants from various friendly countries provided funding of $150,193 million in the first six months of the current fiscal year, of which China contributed $74.5 million, France $6.87 million, Germany $12.07 million, Japan $5.151 million, Korea $3.22 million. million, Saudi Arabia provided. $1.092,000, UK $14.537 million and USA $32.60 million.
Pakistan had earned $1.04 billion by launching Eurobonds in the first six months of the current financial year. Islamabad launched Eurobond in July 2021 to raise over $1 billion. Now PTI government has recently launched another international Islamic bond known as Sukuk at the highest rate of 7.95 per cent in January 2022, so this amount of $1 billion will be reflected in the amount. Official dollar inflow figures next month.
Commercial banks provided $2.031 billion in loans during the first half of the current financial year as Ajman Bank provided commercial loans of $61,000,000, Dubai Bank $1.14 billion, SCBL (London) $487.255 million and SUISSE, AG, UBL and Provided by the ABL Consortium. $343 million loan. In December 2021, commercial banks provided a loan of $502.054 million to Pakistan to meet its financial needs.
Multilateral creditors provided $2.9 billion in loans in the first six months of the current fiscal year, of which ADB's total loans were $1.06 billion, AIIB $37.7 million, EU $22.55 million, World Bank IBRD loans $158.7 million, WB distributed the IDA funding. $807.034 million, IDB $4.308 million, IDB (short term) $800.686 million and IFAD $13.964 million.