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Govt receives $15.63bn in loan, grants

October 19, 2012

– AFP (File Photo)

ISLAMABAD, Oct 18: The government has taken a total of $15.63 billion loans and grants from various countries and international donors, excluding disbursements made by the IMF.

The documents prepared by the Economics Affairs Division (EAD) showed that the government received $13.07 billion in loans during March 25, 2008 to July 1, 2012.

In all Pakistan has obtained 58 different loans worth $3.81 billion from seven countries while 167 loans amounting to $9.25 billion have been taken from eight donor agencies.

Pakistan has obtained a total of $2.56 billion in the form of grants which include financial support worth $2.19 from 13 countries and $375.56 million from donor agencies.

The UK and USA are the larges donors for Pakistan, and both the countries have not loaned any amount to the country. USA disbursed the highest amount of $1.25 billion in terms of grants to Pakistan followed by $528.65 million grants by the UK.

During the period from March 2008 to July 2012, China remained the largest lender country for Pakistan providing $2.48 billion in terms of loans, while the grants amounted to $69.38m.

Similarly, there is huge disparity between loans and grants given by Saudi Arabia, as the loans provided by Saudi Arabia to Pakistan during this period amount to $698.62 million compared to $7.65 million grants provided by that country to Pakistan.

The third largest lender country for Pakistan is Japan providing $458.81 million loans to country, while Japan has given $215.65 million grants during this period.

Kuwait has given six different loans amounting to $68.14 million but has not given any grants to Pakistan. Similarly, France and Korea have not given any grants to Pakistan but both countries provided $21.58m and $20m loans.

Similarly, the Opec fund has given only a loan of $26.59 million to Pakistan.

Among the donor agencies, the largest loan of $4.16 billion has been obtained from the Asian Development Bank.

The incumbent government has taken 75 different loans from the ADB and the average repayment period for these loans are 20 years, whereas, the ADB has provided $67.75 million grants to Pakistan in the past four years.

The IDA of World Bank provided 50 loans worth $2.99 billion and it gave $37.23 million grants to Pakistan, the total loans from the IDB amounted to $1.66 billion and no grants have been provide by the IDB to Pakistan.

Among international organisations, UK aid agencies have provided the highest number of $91.36 million in terms to grants. The other donor organisations who have provide only grants and not only loans to Pakistan are European Union providing grants worth $62.67 million, GAVI alliance $34.20 million, and other donors including UNDP, UNHCR and World Food Programme.