Pakistan has decided to retract its offer to host the 1978 Asian Games, official sources in the capital, Islamabad, announced last week. No formal statement has yet been made.

The move was made necessary, the sources said, by t he rapidly increasing costs Pakistan would have to meet as Games host.

Despite the decision, work on a Chinese-financed Sports Stadium and Gymnasium in Islamabad is expected to continue as scheduled... as are plans for a 00-bed hospital for sportsmen to be built by the Soviet Union.

Pakistan is the second country to decide it cannot afford to host the 1978 Games. Last year, Singapore also turned down the invitation on economic grounds.

Other possible venues for the Games are China and Iran... ?? for the 1974 sports spectacular.