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Pakistan to pay fine of $7mln on non-usage of loans

ISLAMABAD: Pakistan would pay a sum of $7 million to Asian Development Bank (ADB) in terms of fine if it does not use loan worth $4.5 billion.

According to details, ADB granted $6.4 billion loan to Pakistan for different projects while federal government has only used amount of $1.80 billion.

ADB imposes commitment fee of 0.15 percent on funds not used and this makes approximately $7 million. ADB has cancelled loans worth $29.36 million in previous year over delay. Federal government regularly pays annual interest on this loan.

Out of total $2.90 billion loan for energy sector, only $400 million has been used till date. ADB is assisting Pakistan in 37 uplift projects and in one sector reform program. ADB has expressed grave concerns over indolence in use of granted funds.

It may be recalled that in February 2017, Pakistan government has inked an agreement with ADB according to which later would grant loan of $320.50 million for various projects in Punjab and Khyber Pakhtunkhawa (K-P).

Under said loan development program, K-P would built 1000 power plants of hydropower at various spots. Similarly, Punjab and K-P would set 17, 400 and 8, 187 schools on solar energy respectively. NNI

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