World News | Pakistan is Asia’s largest recipient of ADB loans

Islamabad [Pakistan]April 29 (ANI): Pakistan has become the largest recipient of Asian Development Bank (ADB)-funded programs/projects in 2022, Pakistan Today reported.

According to the ADB’s annual report for 2022 released on Monday, Pakistan received US$5.58 billion out of a total of more than US$31.8 billion in loans disbursed to 40 countries.

Read also | Operation Kaveri: Another flight with 231 Indian passengers arrives in New Delhi from conflict-torn Sudan (watch video).

Pakistan, which is in the midst of a severe economic crisis, received $2.67 billion in concessional funds from the bank last year out of a total loan of $5.58 billion.

However, these loans have been used by Pakistan to avoid default. According to Pakistan Today, the loans were conditional on Pakistan receiving the loan from the IMF, which imposed its own conditions.

Read also | Maharashtra Deputy CM Devendra Fadnavis inaugurated a statue of Maratha warrior Chhatrapati Shivaji Maharaj in Mauritius (see photo).

One problem is that the loans are not being used to fund projects that would increase income and repay the loans; more recently, debts have been incurred to pay off previous debts.

The idea is to prevent Pakistan from defaulting, thus keeping access to foreign currency markets open. This access is required to borrow more funds to pay back the loan.

According to Geo News, the report highlighted the region’s vulnerability to climate change as Pakistan was also hit by devastating floods that killed more than 1,700 people, directly affected 33 million people and caused billions of dollars in damages , and exacerbated an already fragile economic situation.

One of the most worrying aspects of this situation is that no one seems to have a solid solution to the problem. While embezzlement and corruption played a role, it was clearly a cause of the debt.

If multilateral institutions such as the International Monetary Fund and the Asian Development Bank withdraw, Pakistan will turn to bilateral assistance from friendly countries. Now even those countries seem tired of pumping more money into what appears to be a bottomless pit, and are tying aid to the IMF, which lends money, Pakistan Today reported.

Moreover, Pakistan’s parliament has been emphasizing its supremacy in financial matters, with oversight of all borrowing.

Borrowing from abroad is seen as a diplomatic matter and Parliament is slapped on the head and told to leave it alone. Although it will have to pay huge sums of money to repay this debt, Pakistan Today reported.

Meanwhile, political instability and military intervention left Pakistan with nowhere to go in the ensuing economic chaos. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the body of content may not have been modified or edited by LatestLY staff)