Govt borrows over Rs1.25 trillion in six months, official data shows

ISLAMABAD (Mudassar Ali Rana) – The federal government borrowed Rs1.254 trillion in external loans during the past six months.

According to official documents from the Ministry of Economic Affairs, the government borrowed 29 percent more—an increase of Rs280 billion—compared to the same period of the previous fiscal year. From July to December, Pakistan also received grants worth Rs17.67 billion, taking total external financial assistance during this period to Rs1.272 trillion.

In dollar terms, Pakistan received $4.5 billion over six months, which is $904 million more than the corresponding period of the previous fiscal year. During the first six months of last year, Pakistan had received $3.6 billion. Loans received from the IMF during this period are not included in these figures.

During the six months, non-project aid amounted to Rs785 billion, while project-based aid stood at Rs487 billion. Of this, Rs458.72 billion was obtained as budgetary support. Saudi Arabia provided Pakistan with an oil facility worth Rs170 billion, while the Islamic Development Bank extended loans totaling Rs137 billion.

The documents further state that the government estimates total borrowing of Rs5.777 trillion during the current fiscal year. In November alone, loans worth Rs144 billion were acquired.

Borrowing stood at Rs198 billion in July, over Rs192 billion in August, Rs124 billion in September, and Rs133 billion in October.

It was also reported that in December, Pakistan received $970 million under bilateral and multilateral agreements, while New Pakistan Certificates worth $236.1 million were issued.