Multilateral Banks Halt Aid to Pakistan

People displaced by the massive floods in Pakistan stay in tent camps like this one in Balochistan. Multilateral banks all have reportedly suspended aid to the country. Photo by: Amjad Jamal / UN

The Asian Development Bank, World Bank and Islamic Development Bank all have reportedly suspended their financial assistance to Pakistan, asking the country to provide a “Letter of Comfort” from the International Monetary Fund before they resume their funding.

The delay in the disbursement of aid from these multilateral donors provides another setback for the Pakistani government, which continues to struggle with a deepening national deficit, analysts tell the Asia Times.

The newspaper notes that the IMF is “losing patience” with Pakistan’s coalition government, which has yet to implement reforms recommended by the fund to ease fiscal deficit.

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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.