Multilateral Banks Halt Aid to Pakistan

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.