The decrease in disbursements can be attributed to major international creditors pulling back due to delays in reaching a deal with the IMF. As against the annual estimate of $1.2 billion, the Islamic Development Bank released only $161 million for oil facilities. Against an annual estimate of $7.5 billion, Pakistan has only received $900 million in foreign commercial loans in the current fiscal year. Due to credit rating-related issues, the government had to include $1.3 billion of Chinese commercial bank debt on its domestic debt balance sheet. The government also expected to receive $3 billion from the IMF, later increased to $3.5 billion, but has only received $1.2 billion so far.

Source: The Express Tribune June 21, 2023 14:46 UTC