Pakistan signs loan deals with World Bank, AIIB

IFIs will provide $750m financing for RISE programme

ISLAMABAD:

Pakistan has signed two financing agreements totalling $750 million with the World Bank and Asian Infrastructure Investment Bank (AIIB) for the Resilient Institutions for Sustainable Economy (RISE) programme.

According to the agreements, the World Bank will extend financing of $500 million and AIIB will provide co-financing of $250 million for the RISE programme.

According to a statement issued on Thursday, this is concessional financing in the form of budgetary support that is being provided by the two international financial institutions (IFIs) under RISE and development policy financing.

The objective of the loans is to enhance the policy and institutional framework to improve fiscal management as well as the regulatory framework in order to foster growth and competitiveness.

The efforts aimed at strengthening fiscal management would support the ongoing stabilisation drive of the government, it said.

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

Following signing of the loan agreements, the $750 million will be disbursed immediately to Pakistan in a single tranche in the next few days.

The disbursement under the programme is expected to strengthen foreign exchange reserves and provide liquidity for the economy.

Ministry of Economic Affairs Secretary Noor Ahmed signed the two loan agreements on behalf of the government of Pakistan. World Bank Country Director Patchamuthu Illangovan and AIIB Vice President Konstantin Limitovsriy inked the deals on behalf of their respective entities.