ISLAMABAD: Pakistan received $5.6 billion in foreign financing in fiscal year 2015, over 90% of which was in the form of loans.
According to report, the government fell short of its estimates by $1.8 billion, mainly due to its inability to introduce reforms in the energy sector, and made up for the shortfall with heavy domestic borrowing.
The government had projected receiving $7.4 billion in loans and grants in the fiscal year that ended June 30. Instead, it was able to secure only $5.1 billion in loans and $515 million in grants, according to figures released by the Economic Affairs Division of the finance ministry.
According to the EAD, the Asian Development Bank gave $450 million in loans in fiscal 2015, 59% less than the government’s estimates of $1.1 billion. The ADB delayed the approval of $400 million in budgetary support for the energy sector due to the government’s failure to implement reforms.
The World Bank gave $1.2 billion, or slightly less than two-thirds of annual estimates of $1.9 billion.
The Islamic Development Bank was the only multilateral institution that gave more than the government’s estimates. The country received $1.15 billion from the IDB, which was 15% more than the government’s projections.
