Loan refused by ADB, WB

The Asian Development Bank (ADB) and World Bank (WB) refused to pay a 750 million dollar loan to Pakistan.

Both banks said that the government of Pakistan failed to meet the terms and conditions that were set in order for receipt of the loan.

ADB and WB were to forward the loan to its Board of Directors for approval, after which the amount was to be transferred into the Pakistani  government's account by June 30th.

This means that the $100 million offered by Japan along with this loan will also be missed out on by Pakistan.

Under these circumstances, Pakistan’s budget deficit is expected to increase to 5.7 per cent for the current fiscal year.