February 8, 2019 at 5:46 pm
Chitral Times Report
ISLAMABAD: A section of media has carried a story titled ‘Pakistan cuts loan estimates as $6.5b remains stuck’. The report asserts that the foreign inflows from multilateral and bilateral sources have dropped significantly in recent months and therefore the Economic Affairs Division (EAD) has reduced its annual projections from the original budgetary estimates of $4.3 billion to $3.7 billion. It is clarified that there has been no cut in loan estimates. At the time of Annual Budget 2018-19, the Economic Affairs Division had estimated $4.691 billion of foreign inflows from multilateral and bilateral donors. However, in view of improved external environment, the EAD has in fact increased its projections to $5.630 billion which is 20% higher than the original estimates. During the first six months of current fiscal year (i.e. July-December, 2018), external inflows amounted to $1.813 billion from multilateral and bilateral sources. Despite several challenges, EAD is actively pursuing to achieve the remaining external inflows target of $3.817 billion. Therefore, the question of reduction in external inflows simply does not arise.