Over the years, Pakistan’s addiction to programme loans (read as non-project loans) also enabled it to run high budget deficits. The Asian Development Bank began providing lending in 1969, with a loan for the Industrial Development Bank. In terms of amount, 39% of the loans have been project loans and 61% have been programme loans, according to the authors. In terms of amount, 29% were project loans and 71% were programme loans, he added. The Ministry of Finance needs to come out of its state of denial and needs to negotiate early public debt restructuring.
