By Omer Bilal ISLAMABAD, November 10 (INP-WealthPK): Pakistan has obtained a $3.098 billion provisional disbursement (July-September) from multilateral and commercial banks during the first three months of the current fiscal year 2021-22. According to the Ministry of Economic Affairs’ figures, the government has received $76.97 million on bilateral basis, $1.563 billion from multilateral organisations, and $457 million from commercial banks. The government has also received $106.87 million grants from different countries including the US, Japan, Germany and multilateral organisations from July to September. Official data shows that China remained on top which provided $73.35 million loan to Pakistan, while the US transferred $27.27 million loan as well as a grant to Pakistan from July to September. In addition, the Asian Development Bank lent $459.95 million, International Development Association (IDA) $531.25million, IDA (short-term) $446.31 million, International Bank for Reconstruction and Development (IBRD) issued grant of $29.24 million, and in terms of loan issued $82.27 million, AIIB lent $36.57 million, while in respect of grant issued $1.20 million, while International Fund for Agricultural Development (IFAD) issued grant of $0.50 million, and lent $5.58 million during the same period. Furthermore, commercial banks, including Ajman Bank PJSC Dubai as well as SCB London, have provided provisional disbursement of $457.54 million loans in three months in which the share of Ajman Bank PJSC is $61 million. Dubai Bank issued $215 million, while SCB London disbursed $181.54 million against the total yearly budget estimate of $4.87 billion. Funding requirement of the budget deficit is mainly met through domestic market, and within the domestic sources, a large portion of the financing is mobilised through long-term government securities. Public debt continued to rise due to financing of the budget deficit, depreciation in the exchange rate, higher interest payments, Covid-related economic stimulus package and social safety programmes. Official figures show that the government has obtained $363.26 million in the first two months, and $94 million in September. It is pertinent to note that the government has estimated to obtain a $14,088 billion loan as well as grants from bilateral, multilateral and commercial banks in the budget 2021-22. During the last fiscal year, the government had kept its commitment to abstain from borrowing directly from SBP. SBP, in coordination with the government, also introduced new variants of Floating Rate Pakistan Investment Bonds and made revisions to the auction participation mechanism to allow the government to meet its requirement from the market and increase the maturity profile of public debt. In addition, the government wants to raise its funding by issuing Shariah-compliant papers. So, it has started issuing domestic Sukuk on a consistent basis just like conventional debt instruments. This will provide banks with an avenue to park their surplus deposits.