Pakistan economy contracted $10.5 billion foreign loans in FY20; hits new low
13 December, 2020 | Rakshanda Afrin
Pakistan contracted $10.5 billion worth of new foreign loans from multilateral institutions and commercial banks during the fiscal year 2019-20. It is almost one-fourth higher than the previous yea...
According to a media report, Pakistan contracted $10.5 billion worth of new foreign loans from multilateral institutions and commercial banks during the fiscal year 2019-20. It is almost one-fourth higher than the previous year’s $8.4 billion. Out of the total new agreements of $10.447 billion, more than $6.79 billion financing agreements were signed with multilateral agencies, $3.463 billion with foreign commercial banks, and $193 million with bilateral lenders.
Imran Khan’s elected government in Pakistan slowly seems to collapse as the leaders of the Pakistan Democratic Movement (PDM) consisting of an 11-party alliance alleged that the wrong policies of the Imran Khan-led government had brought the country to the “brink of economic disaster”. The opposition alliance organized protest meetings and demonstrations in certain provinces of Khuzdar, Gwadar, and Hub, where local leaders spoke to the public.
The opposition is opening criticising the Imran Khan-led government and its leadership saying that their wrong policies had resulted in the country “becoming bankrupt”. Pakistan Muslim League-Nawaz (PML-N) Punjab President Rana Sanaullah said the final decision about mass resignation from national and provincial assemblies will be taken by the leadership of the opposition’s 11-party alliance: Pakistan Democratic Movement (PDM).
Asian Development Bank (ADB) emerged as the largest lender with new commitments of 30 percent, followed by World Bank 22 percent, Islamic Development Bank (IDB) 7 percent, and Asian Infrastructure Investment Bank (AIIB) 5 percent.