Pakistan’s External Borrowing For The Current Financial Year Rises By 18.37% Amid Inflows From IMF, Saudi Arabia, China And Global Lenders
According to an article by Samaa News, Pakistan’s borrowing for the current financial year increased by 18.37% despite the inflows from IMF, Saudi Arabia, China and other global lenders.
Between July and February, Pakistan received a total of $5.86 billion in external financial assistance. Out of the $5.86 billion, $5.76 billion was attributed to new loans and $92.2 million to grants.
The volume of loans increased by $910 million compared with the same period (July to February) of the previous financial year.
This largely attributes to the increase in external borrowing by 18.37%. An increase in the volume of loans—particularly domestic borrowing can contribute to rising external debt, often acting as a catalyst for external imbalances. While domestic borrowing keeps money within the nation, high levels of lending can fuel aggregate demand, leading to increased imports, a worsening current account deficit, and an eventual, necessary reliance on foreign loans to bridge the gap.
Read the original article in more detail to get the full financial picture concerning the current financial year that ended on February. Want to catch up on the latest gold rates in Pakistan? Read our article here.
