The government of Pakistan has recently received loans worth $728 million from World Bank (WB) and Asian Development Bank (ADB) in a bid to develop multiple infrastructure projects in several cities.
According to the State Bank of Pakistan (SBP), the central bank has received $622 million from ADB and $106 million from WB.
Alongside receiving loans that worth $728 million, the foreign-exchange reserves also received an additional inflow of $227 million on different occasions. Therefore, the total inflows of the country were increased significantly by $955 million during the on-going week.
Those who are not familiar, this is the biggest inflow since the start of the current fiscal year. Previously, the central bank received $550 million in March from USA on account of Coalition Support Fund (CSF). Nevertheless, the central bank is planning to pay off $2.5 billion to different foreign banks on account of loans repayment along with interest since the start of the calendar year.
Overall, the total foreign exchange inflows of Pakistan increased to $21.35 billion as of June 30, 2017, which stood at $20.36 billion on June 16, 2017.
The significant drop and increase of foreign exchange reserves have been the hallmark of the current regime. However, the current government has faced criticism by many independent economists because of increasing level of overall foreign debts that hit the mark of $75 billion in the past few months.