Make Money Free
ISLAMABAD: Without the protection of the International Monetary Fund (IMF), Pakistan’s access to external funding appeared to come to a grinding halt as the country received inflows that were 38% lower: only $8.1 billion in the first ten months (July-April) of the current fiscal year, compared to nearly $13 billion in the same time of the previous fiscal year.
The full-year target of $22.8bn to be missed by a wide margin
The pace of dwindling inflows could also be seen from the fact that $8.1bn receipts in 10 months of this fiscal year stood at just 35.5pc of the $22.8bn full-year budget target — implying a constant precarious position of the foreign exchange reserves despite tight import curbs.
So far, foreign assistance suggests a wide gap would miss the annual target. Pakistan received only $359m in April alone, down 57pc compared to $842m in November 2022.
Aitodayblog In its monthly report on Foreign Economic Assistance (FEA), the Ministry of Economic Affairs said it received about $8.1bn foreign assistance in 10 months (July–April) compared to $13.03bn in the same period last year. As such, the total inflows at $8.1bn in the first ten months amounted to just 35.5pc of the budget estimates of $22.817bn for the fiscal year. Last year (2021-22), the first 10-month inflows of $13.03bn accounted for 93pc of the annual budget estimates of $14.1. The MEA had finally reported the full fiscal year foreign economic assistance at $16.975bn in 2021-22.
Govt gets a paltry $8.1bn in financing.
Based on your comment, it sounds like a government has recently secured $8.1 billion in financing, and you’re referring to this amount as “paltry.” This could be because you were expecting a higher amount or the funds needed to address certain issues significantly exceed this sum.
Characterizing this as a “paltry” sum largely depends on the specific context – what government you’re referring to, what the funds are intended for, and the scale of the economic challenge or project.
For instance, for a small country, $8.1 billion could be a significant amount of funding. It might be a relatively small amount for a large country or a major initiative.
When a government secures financing, it typically comes from a combination of sources: tax revenue, bond issuance (domestic or international), loans from international financial institutions, and in some cases, grants from other countries or international bodies.
Each of these sources of financing carries different benefits and drawbacks, including varying interest rates and repayment schedules, implications for the country’s fiscal health, and political consequences.
It’s hard to provide a more precise or detailed interpretation without more information. Could you please give more context or specify your question further?
