Pakistan Receives PKR 3,856 Arab Foreign Assistance In FY22

external public debt,Cost of Borrowing Money,Energy and Electricity Sector,Project and Programme Loans,Foreign Economic Assistance,Islamic Development Bank,FEA's primary goal,welfare of developing nations

Foreign Economic Assistance

Foreign economic assistance (FEA), which may be given bilaterally or through intergovernmental institutions, is help that supports the economic growth and welfare of developing nations. 

The FEA’s primary goal is to assist emerging nations in reducing their fiscal imbalances and fostering growth and development.

Project and Programme Loans

In FY22, $16.974 billion in disbursements were granted to Pakistan, primarily in the form of project and programme loans and grants, according to the annual report released by the EAD. 

The ADB, World Bank, and Islamic Development Bank were the major donors among multilateral development partners.

Energy and Electricity Sector

According to the report, China contributed more bilaterally than any other country to all outlays during the time period under consideration. The greatest portion of the total, or 26%, went to the energy and electricity sector.

Read More | Saudi Arabia and Australia ask citizens in Pakistan for caution

Read More | Saudi Arabia and Australia ask citizens in Pakistan for caution

The disbursements are made up of the following: 

  • $4.873 billion, or 29%, from foreign commercial banks
  • $4.828 billion, or 28%, from multilateral development partners, primarily the ADB, World Bank, and IsDB
  • $3 billion, or 18%, under SFD Time deposits; 
  • $2.231 billion, or 13%, from bilateral development partners, particularly China and Saudi Arabia; and
  • $2 billion, or 12%, from international bond-holders.

Cost of Borrowing Money

The EAD stated that as long as the economic rewards outweigh the cost of borrowing money, borrowing can be beneficial for the economic growth of developing nations. 

Although external debt aids in economic expansion, its reliance must be carefully watched over and managed.

External Public Debt

The report indicated that as of June 30, 2022, Pakistan had an external public debt totaling $88.84 billion. It also claimed that during FY22, Pakistan paid $12.378 billion to service its external public debt.

The EAD reported that interest payments were $2.023 billion, while principal repayments amounted to $10.355 billion.

Vinkmag ad

Read Previous

Pakistan’s Gold Price surges to an all-time high

Read Next

Pakistan: Section 144 imposed in the port city of Gwadar

Leave a Reply

Your email address will not be published. Required fields are marked *