ISLAMABAD: Pakistan is grappling with significant delays in external financial assistance, primarily due to the pending approval of a crucial $7 billion bailout package from the International Monetary Fund (IMF). This delay has hindered the flow of funds from other international financial institutions and countries, leading to a substantial shortfall in external financial support. Official documents from the Economic Affairs Division reveal that Pakistan received only $436.3 million in external financial assistance in July.
This amount represents just 2.2% of the $19.21 billion target set for the current fiscal year. In stark contrast, Pakistan secured $2.89 billion in external loans during the same period last year. The breakdown of the funds received in July shows that $127.7 million came through the Naya Pakistan Certificate, while international financial institutions contributed $201 million. Among these institutions, the World Bank provided $118.8 million, China contributed $96.76 million, and the Asian Development Bank (ADB) offered over $54 million. The International Bank for Reconstruction and Development (IBRD) lent more than $20 million.
In addition, various countries contributed $107.6 million in loans. Germany provided $3.5 million, while Saudi Arabia lent $2.69 million. The United States also made grants totaling over $1 million, with the largest grant amounting to $4.442 million. The Economic Affairs Division reported that a total of $425.9 million was allocated for various projects during this period. However, the ongoing delay in the IMF’s final approval is significantly affecting Pakistan’s ability to secure the necessary external financial assistance, which is critical for maintaining economic stability and progress.
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