ADB Threatens to Withdraw Support for Pakistan SMEs

The Asian Development Bank says it may withdraw its financial assistance for a small and medium-size enterprise development program in Pakistan because of the government’s failure to follow conditions stipulated in the funding agreement, according to news reports. The bank also warned the alleged contract breach will affect the design of its future engagements with the country. ADB explained in a letter to top Pakistani officials that the government complied with only nine out of 11 conditions the bank set for release of the program’s third tranche. The regional lender added that only eight of 11 conditions for the second tranche were fully met.

About the author

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    Ivy Mungcal

    As former senior staff writer, Ivy Mungcal contributed to several Devex publications. Her focus is on breaking news, and in particular on global aid reform and trends in the United States, Europe, the Caribbean, and the Americas. Before joining Devex in 2009, Ivy produced specialized content for U.S. and U.K.-based business websites.