Islamabad: The Asian Development Bank has told Pakistan it would restore its lending policy only after the finalisation of a multi-billion bailout package from the International Monetary Fund (IMF), a news source reported. The Manila-based lender is seeking the IMF assessment letter to dispatch the loans.
The views were expressed by ADB’s country director to Pakistan Xiaohong Yang. Director General of the ADB Strategy, Policy & Review Department, Tomoyuki Kimura, who is on a visit to Pakistan, also accompanied Yang.
Yang said ADB is devising several structural reforms in consultation with other multilateral financial institutions to help Pakistan restore economic stability and overcome macroeconomic imbalances.
The international lending agency is also preparing strategy to address Pakistan’s circular debt in in a manner that it tackles both the flow of fresh debt and then resolve the outstanding stocks on permanent basis.
For the next three years, ADB has proposed to provide USD 2.4 billion or 32% of the total loans for budgetary support to Pakistan, on the condition that the government gets a good economic health certificate from IMF.
