Middle East & Central Asia News
LAST UPDATE: June 5, 2025
India Opposed ADB’s $800 Million Loan to Pakistan
India opposed the Asian Development Bank’s approval of an $800 million loan to Pakistan, citing concerns over fund misuse and regional security.
Insight
India’s objection reflects ongoing tensions between the two countries, particularly regarding financial aid that could potentially be diverted to activities counter to regional stability. The move also indicates India’s influence within multilateral financial institutions and its commitment to ensuring that development funds are used transparently. This incident may prompt stricter oversight of international loans and their end-use in politically sensitive regions.
Kazakhstan Holds Key Rate and Casts Doubt on a Cut This Year
Kazakhstan’s central bank maintained its key interest rate and indicated that a rate cut is unlikely this year due to inflation concerns.
Insight
The decision reflects the central bank’s cautious approach to monetary policy amid global economic uncertainties. By holding the rate steady, Kazakhstan aims to control inflation and maintain financial stability. This stance may affect domestic investment and consumer spending but is deemed necessary to prevent economic overheating. The move also signals to international investors that Kazakhstan is committed to prudent fiscal management.
Afghan civil servants face bleak Eid after salaries delayed
Afghan civil servants are facing a difficult Eid holiday due to delayed salary payments amid the country’s ongoing economic crisis.
Insight
The salary delays highlight the severe financial challenges facing Afghanistan’s government, affecting public sector workers’ livelihoods. This situation may lead to decreased morale and efficiency within the civil service, further hampering governance and public service delivery. The economic strain also exacerbates humanitarian concerns, potentially increasing reliance on international aid. Addressing these issues requires comprehensive economic reforms and international support.
