US Monitoring $40 Mln Loan To Pak Amidst Graft Charges

WASHINGTON, DC (ANI) – The US has acknowledged claims made by Pakistan Peoples’ Party (PPP) chairman, Bilawal Bhutto Zardari on accusations of alleged mismanagement of $400 million received by Pakistan in loans and aid from the World Bank, meant for flood relief actions in the country.

According to Ary News, Bilawal accused the central government of Pakistan of appropriating funds that were originally intended for flood victims and utilizing them for other unrelated projects.

Responding to the allegations, US State Department spokesperson Mathew Miller, in a press briefing on October 2, emphasized that the United States was closely monitoring the situation. He said, “We take this matter very seriously, not just in Pakistan but also wherever American taxpayer dollars are used, and where urgent humanitarian interests are at stake”.

Miller explained that both the State Department and USAID follow strict protocols to monitor and evaluate the use of foreign aid given by the country to other countries in need. This is done to ensure transparency and accountability.

“We halt assistance when we observe any misdirection or misuse of funds,” he added, indicating potential concerns over the misuse of flood relief resources in Pakistan.

Pakistan has been facing a climate crisis in recent years. These extreme weather events include heatwaves, cyclones, floods and glacier melting that resulted in the catastrophic 2022 floods. The Climate Risk Index has included Pakistan in the top 10 most vulnerable countries to climate change.

According to the Asian Development Bank, climatic changes are expected to have wide-ranging impacts on Pakistan, affecting agricultural productivity, water availability, and increased frequency of extreme climatic events. These risks have been translated into economic crises, damaging lives and threatening livelihoods.