Farooq Awan

Net transfers to the government’s external public debt recorded a positive balance of US$ 1,713 million during July–June 2024-25, according to the Annual Report on Foreign Economic Assistance issued by the Ministry of Economic Affairs.

The report explains that net transfers represent the difference between external loan inflows received and repayments made to foreign creditors during a specific period. A positive net transfer indicates an increase in the external public debt stock, while a negative balance reflects a reduction.

During the fiscal year 2024-25, total external loan inflows amounted to US$ 11,441.24 million, while external loan outflows in the form of repayments totaled US$ 9,728 million, resulting in a net positive balance of US$ 1,713.24 million.

According to the source-wise breakdown provided in the report, multilateral partners recorded a net positive transfer of US$ 2,533 million. Total inflows from multilateral institutions stood at US$ 4,753 million, compared with outflows of US$ 2,220 million during the fiscal year.

Within the multilateral category, the Asian Development Bank (ADB) recorded net transfers of US$ 1,194 million, based on inflows of US$ 2,124 million and outflows of US$ 930 million. The World Bank posted net transfers of US$ 851 million, with inflows of US$ 1,688 million and repayments of US$ 837 million.

The Islamic Development Bank (IsDB) registered net transfers of US$ 387 million, reflecting inflows of US$ 739 million and outflows of US$ 352 million. The Asian Infrastructure Investment Bank (AIIB) posted net transfers of US$ 50 million, while IFAD recorded US$ 41 million and ECO Trade and Development Bank US$ 14 million. Other multilateral institutions collectively recorded a net negative transfer of US$ 4 million.

In contrast, bilateral partners recorded a net negative transfer of US$ 1,371.76 million. Bilateral inflows totaled US$ 479.24 million, while repayments amounted to US$ 1,851 million.

Among bilateral partners, Saudi Arabia recorded a net negative transfer of US$ 560 million, with inflows of US$ 217 million and repayments of US$ 777 million. France recorded a net negative of US$ 90 million, China US$ 68 million, Korea US$ 41 million, Germany US$ 88 million, and Japan US$ 333.76 million. Kuwait posted a positive net transfer of US$ 12 million. Other bilateral sources collectively recorded a negative net transfer of US$ 203 million.

Foreign commercial banks recorded a net positive transfer of US$ 1,627 million, with inflows of US$ 4,291 million and repayments of US$ 2,664 million. Naya Pakistan Certificates (NPC) registered a positive net transfer of US$ 448 million.

The International Monetary Fund (IMF) recorded a net negative transfer of US$ 1,523 million, reflecting no inflows and repayments of US$ 1,523 million during the fiscal year.

The report notes that net transfers are calculated on the basis of actual exchange rates, whereas the external public debt stock is estimated at a specific point in time; therefore, minor differences may arise due to exchange rate variations.

The Annual Report on Foreign Economic Assistance 2024-25 highlights the positive net transfer of US$ 1,713 million as part of its assessment of changes in the external public debt position during July–June 2024-25.

Credit: INP-WealthPk