Pakistan paid $100m penalty to ADB in last 15 years for failure to complete projects

Reports indicate that Pakistan has paid the Asian Development Bank a hefty fine of $100 million for failing to execute projects. Over the past 15 years, Pakistan failed to honor the deadlines on various donor-funded projects. There have been a few examples shared with the media regarding bad governance in the implementation of donor-funded projects in Pakistan.

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Consequently, various governments coming into power since 2006 have used the hard-earned foreign exchange reserves to pay for these projects. ADB imposed a commitment charge of 0.15% if executing agencies failed to deliver work within the agreed time frame and the loan was not disbursed.

Source: The News Today