Asian Development Bank distances itself from Pakistan’s ‘premature’ claim of $3.4 billion loan

Asian Development Bank distances itself from Pakistan’s ‘premature’ claim of $3.4 billion loan

The ADB has distanced itself from the “premature announcement” of PM Imran Khan’s adviser that the global lender would provide a loan of $3.4 billion to the cash-strapped nation

AgenciesUpdated: Monday, June 17, 2019, 10:13 PM IST
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Islamabad: In a huge embarrassment for the Pakistan government, the ADB has distanced itself from the “premature announcement” of PM Imran Khan’s adviser that the global lender would provide a loan of $3.4 billion to the cash-strapped nation, saying “discussions are ongoing”.

The rare rebuff by the Philippines-headquartered institution came a day after Khan’s adviser on finance Abdul Hafeez Shaikh and Federal Minister for Planning, Development and Reforms Khusro Bakhtiar announced that the country would get a loan of $3.4 billion for budgetary support, out of which $2.1 billion wo­uld be released within a year.

The Asian Development Bank (ADB) stance taking the rare step on a public holiday to issue a statement assumes significance as the cash-strapped country is trying to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy. In its statement, the ADB confirmed the meetings with the government members and discussions on loans.

“These discussions are ongoing and details of the plans as well as the volume of ADB’s financial support, once finalised, will be contingent upon the approval of ADB management and its Board of Directors,” ADB’s Country Director for Pakistan Xiaohong Yang was quoted as saying by Dawn news on Monday.

The ADB said it was “discussing with the GoP (government of Pakistan) plans to provide budget support programmes, results-based and project assistance to help improve Pakistan’s competitiveness and fiscal sustainability”.

It said the bank could help the government manage external debt and balance of payments and maintain the momentum of macroeconomic and structural reforms to support economic stability and expansion.

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