In embarrassment for Pakistan, Asian Development Bank distances itself from country’s claim that lender will provide it $3.4 billion loan

Islamabad: In a huge embarrassment for the Pakistan government, the Asian Development Bank (ADB) has distanced itself from the "premature announcement" of Prime Minister Imran Khan's adviser that the global lender would provide a loan of $3.4 billion to the cash-strapped nation, saying "discussions are ongoing".

The rare rebuff by the Philippines-headquartered institution came a day after Khan's adviser on finance Abdul Hafeez Shaikh and Federal Minister for Planning, Development and Reforms Khusro Bakhtiar announced that the country would get a loan of $3.4 billion for budgetary support, out of which $2.1 billion would be released within a year.

The ADB's stance taking the rare step on a public holiday to issue a statement assumes significance as the cash-strapped country is trying to overcome a ballooning balance-of-payments crisis that threatens to cripple its economy.