KSA oil facility, rollover of time deposits keep things afloat

ISLAMABAD: The resumption of Saudi Oil facility and rollover of time deposits by China and Saudi Arabia kept the foreign economic assistance at comfortable level in 2024-25.

According to the data released by Economic Affairs Division, the government received foreign economic assistance 37 percent less against the budget estimates in 2024-25.

The budgetary estimate of foreign economic assistance disbursement for 2024-25 was $19.4 billion, whereas, the government received $12.14 billion which is $7.25 billion less against the estimated target.

However, if budgeted time deposits of $9 billion including $5 billion Kingdom of Saudi Arabia (KSA) time deposit and $4 billion SAFE China deposit for the current fiscal year would be added the foreign financial assistance depicts a very rosy picture.

The resumption of Saudi Oil Facility amounting to $100 million per month jacked up disbursement by Saudi Arabia to $221 million in FY25 against estimates of $76 million

Among the multi-donors, China extended loan of $483.51 million which was as per the Government projection. Asian Development Bank provided financial assistance of $2.13 billion against the estimates of $1.65 billion. Among this amount $2.12 billion was disbursed as loan component whereas $6.46 million received in shape of grant.

Among other prominent multilateral donors were International Development Association (IDA) of World Banks with $1.37 billion; whereas, Islamic Development Bank extended long-term loan of $186 million and short term loan of $552 million.

The total bilateral foreign economic assistance remained $600 million against the estimates $471.2 million in FY25 mainly because of the Saudi Oil facility of $1.2 billion to Pakistan for 12 months. Saudi Arabia also rollover time deposits of $5 billion kept in State Bank to boost its reserves in December 2024, whereas, Chinese deposits of $5 billion was rolled over for another year in March 2025 for the same purpose.

The country’s current account balance recorded a surplus of over two billion dollars in the FY25 for the first time in 14 years, driven by a substantial increase in workers’ remittances.