KSA oil facility, rollover of time deposits keep things afloat
According to the data released by Economic Affairs Division, the government received foreign economic assistance 37 percent less against the budget estimates in 2024-25.
The budgetary estimate of foreign economic assistance disbursement for 2024-25 was $19.4 billion, whereas, the government received $12.14 billion which is $7.25 billion less against the estimated target.
However, if budgeted time deposits of $9 billion including $5 billion Kingdom of Saudi Arabia (KSA) time deposit and $4 billion SAFE China deposit for the current fiscal year would be added the foreign financial assistance depicts a very rosy picture.
The resumption of Saudi Oil Facility amounting to $100 million per month jacked up disbursement by Saudi Arabia to $221 million in FY25 against estimates of $76 million
Among the multi-donors, China extended loan of $483.51 million which was as per the Government projection. Asian Development Bank provided financial assistance of $2.13 billion against the estimates of $1.65 billion. Among this amount $2.12 billion was disbursed as loan component whereas $6.46 million received in shape of grant.
Among other prominent multilateral donors were International Development Association (IDA) of World Banks with $1.37 billion; whereas, Islamic Development Bank extended long-term loan of $186 million and short term loan of $552 million.
The total bilateral foreign economic assistance remained $600 million against the estimates $471.2 million in FY25 mainly because of the Saudi Oil facility of $1.2 billion to Pakistan for 12 months. Saudi Arabia also rollover time deposits of $5 billion kept in State Bank to boost its reserves in December 2024, whereas, Chinese deposits of $5 billion was rolled over for another year in March 2025 for the same purpose.
The country's current account balance recorded a surplus of over two billion dollars in the FY25 for the first time in 14 years, driven by a substantial increase in workers' remittances.
Copyright Business Recorder, 2025
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