The fourth review under the SBA for Pakistan completed mid-May 2010 approved the immediate release of 1.13 billion dollars bringing total disbursements to 7.27 billion dollars, the original amount approved by the IMF on November 20, 2008. In budget document 2010-11, government has projected total external receipts amounting to Rs 386.62 billion - lower by Rs 191.365 billion against Rs 577.985 billion revised budget estimates for ongoing financial year 2009-10. This decline is almost entirely accounted for by zero disbursement by IMF.
According to budget estimates, the country would receive Rs 286 billion project as well as programme loans during the upcoming financial year compared to revised estimates of Rs 450.217 billion for the ongoing financial year registering a shortfall of Rs 164.2 billion. The external grants have been estimated at Rs 99.686 billion against revised estimates of Rs 127.768 billion for ongoing financial year with a shortfall of Rs 28.082 billion.
Government has projected disbursement of Rs 94.387 billion from IMF under stand by arrangement for the ongoing financial year and no amount will be available from IMF for the next financial year resulting in lower external receipts for the upcoming financial year.
Due to poor disbursements from Friends of Democratic Pakistan (FoDP), government has almost halved the grants projection from Rs 46.328 billion for ongoing financial year to Rs 26.694 billion for upcoming financial year 2010-11.On account of loans, government has estimated Rs 55.299 billion receipts under head of Tokyo pledges from FoDP against projected loans of Rs 145.078 billion for ongoing financial year. Now government projects Rs 66 billion programme loans from FoDP during the ongoing financial year 2009-10.
Government has estimated Rs 99.686 billion grants - less by 28.082 billion against revised budget estimates of Rs 127.768 billion amount for the ongoing financial year. Grants have been estimated at Rs 13.566 billion for projects, Rs 7.526 billion for budgetary support, and Rs 51.9 billion grants under Kerry Lugar bill from United States.
Project loans have been estimated at Rs 64.794 billion with Rs 39.18 billion federal and Rs 25.613 billion provincial shares against revised estimates of Rs 90.526 billion for ongoing financial year. Programme loans have been estimated at Rs 80.341 billion against revised budget estimates of Rs 172.017 billion for the ongoing financial year.
From Euro Bonds, Pakistan expects to generate Rs 43.250 billion in 2010-11.Government had also targeted to generate Rs 41.250 billion money by floating euro bonds in international market, which government failed to float it due to global economic recession. Government is also expected to receive Rs 43.25 billion loan from Islamic Development Bank (IDB) during upcoming financial year 2010-11.