Pakistan inks $750m financing pacts with WB, AIIB

'The funds will strengthen Pakistan's foreign exchange reserves and provide liquidity to the economy'

ISLAMABAD: The government on Thursday signed two financing agreements valuing $750 million with the World Bank (WB) and the Asian Infrastructure Development Bank (AIIB) for the Resilient Institutions for Sustainable Economy (RISE) programme.

The World Bank will extend financing of $500 million and the Asian Infrastructure Investment Bank (AIIB) will provide co-financing of $250 million for the RISE programme.

This is concessional financing in the form of budgetary support that is being provided by the two IFIs under Resilient Institutions for Sustainable Economy (RISE), Development Policy Financing with the objective to (i) enhance the policy and institutional framework to improve fiscal management, and (ii) improve the regulatory framework to foster growth and competitiveness.

The efforts aimed at strengthening fiscal management will support the ongoing stabilisation efforts of the government.

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The programme also includes actions that respond to the immediate Covid-19 pandemic needs and addresses medium-term reforms.

Upon signing of the loan agreements, the amount of $750 million will be immediately disbursed to Pakistan in one tranche by the WB and the AIIB in next few days. The disbursements under the programme will strengthen foreign exchange reserves and provide liquidity for the economy.

Noor Ahmed, Secretary Ministry of Economic Affairs, signed the two loan agreements on behalf of the government while World Bank (WB) Country Director Patchamuthu Illangovan and Asian Infrastructure Investment Bank (AIIB) Vice President Konstantin Limitovsriy signed agreements on behalf of the WB and AIIB respectively.

 

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