Pakistan's Foreign Assistance Plummets in July Amid IMF Bailout Anticipation

Pakistan's government, awaiting a $7 billion IMF bailout, secured only $436.4 million in foreign assistance and grants in July, down nearly 85% from last year. This stark decrease contrasts sharply with the previous year's inflow of $2.89 billion, mainly due to the IMF's Stand-By Arrangement.

The Shahbaz Sharif government, anxiously awaiting a $7 billion bailout from the IMF's executive board, faced a weak start to the fiscal year. Pakistan secured a mere $436.4 million in foreign assistance and grants in July, an 85 percent decrease from the same month the year prior, Dawn News reported.

Last July, Pakistan received over $2.89 billion, buoyed by the 9-month $3 billion Stand-By Arrangement (SBA) with the IMF, which enabled the nation to obtain a substantial $2 billion time deposit from Saudi Arabia. Total inflows in July 2023 reached $5.1 billion, including $1.2 billion from the IMF and another $1 billion from the UAE.

The Ministry of Economic Affairs reported $436.39 million in total foreign inflows for this July, compared to $2.89 billion in the same month last year. From project financing, the majority of the inflows amounted to $307 million, marking a 52% decline from the $640 million received in July last year, as highlighted by the Economic Affairs Division.

(With inputs from agencies.)