Islamabad November 1 2023: Pakistan is working to secure concessional funding from multilateral of US$ 6.3bn to meet the external financing requirements, according to ministry of finance.
"To meet the external financing requirements, we are working to secure concessional funding from multilateral (WB, ADB, IsDB) of US$ 6.3bn, IMF $ 3bn has already been approved, and bilateral assistance of around US$ 10bn" states the report.
In the first three months of the current year, CAD has declined further by 58% to $ 0.95 bn. The full-year CAD is projected to stabilize around $ 6.5bn (1.5% of GDP) in FY2024 as trade & investment flows normalize. SBP FX reserves have stabilized at around $ 7.5bn (1.5 months of import cover).
The government expects remittances to recover in Oct 2023, as spreads between the interbank and open market have reduced below 1%. However, global inflation has impacted the disposable incomes of overseas workers, resulting in lower remittances. Ministry of Finance note that remittances have recorded a slowdown across the board in most countries and in particular Bangladesh, India, and the Philippines