Govt may face $2.8 billion shortfall in FY16 estimates


The government is likely to face a significant shortfall of around $2.8 billion, ie, 30 percent in the budget estimates of foreign assistance from multilateral and bilateral donors in the current financial year (2015-16), it is learnt.

According to Economic Affairs Division data, the government had estimated foreign assistance of about $9.18 billion for 2015-16 including grants and loans which is higher by 12 percent than the revised estimates of 2014-15 and 23 percent higher than the budget estimates of 2014-15.

Official sources revealed that country is likely to receive $6.3 billion (around 70 percent) of budget estimates of foreign assistance by the end of current financial year against $5.6 billion during the same period of last year (2014-15).

The government will face shortfall in the budget estimates, in spite of heavy borrowings from commercial banks, as $1.4 billion has been borrowed against the budgeted estimates of $200 million loans for the current financial year (2015-16).

The government has borrowed $408 million from Switzerland-based financial group Credit Suisse for budgetary support; and borrowed $250 million from consortium of commercial banks (SUISSE 2015) for budgetary support, $325 million from consortium of commercial banks (UBLGOP 2015) for budgetary support, $60.2 million from Dubai bank (commodity aid), $263.25 million from Noor Bank PJSC (Noor-2015) for budgetary support and $75 million from Noor Bank PJSC (Noor 2015-02) for budgetary support.

Besides this, the government also borrowed $35 million from Eco Trade Bank (EC02015-1) as short term credit during the period under review. Asian Development Bank (ADB) disbursed $769.78 million in the current fiscal year against the budgeted estimates of $1020.4 million.

According to officials the country is likely to receive $80 million more from the Bank bringing the total disbursement to around $850 million by the end of current financial year.

China was expected to be the largest single donor to Pakistan with a budgeted inflow of $3.05 billion. The country received $619.4 million in the current financial year from China and is likely to receive up to $680 million by end June, thus may face a shortfall of around $2.3 billion during the period under review.

International Development Association (IDA) is likely to disburse $950 million by the end of current financial year against the budget estimates of $1.7 billion. UK has disbursed $255.47 million in the current financial year and may meet the budget estimates of $331 million.

The US disbursed $147.61 million and surpassed the estimates of $102 million. International Bank of Reconstruction and Development (IBRD) disbursed $88.38 and surpassed the estimates of $82 million.

IDB (S-Term) has disbursed $774.04 million in the current fiscal year and may meet the budget estimates of $1.2 billion. The government has budgeted about $80 million from Australia, EU, Italy, Norway and UNDP for the outgoing financial year, however no assistance has so far been received during the period under review.  -Business Recorder

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