‘AIIB has increased aid to Pakistan’
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Asian Infrastructure Development Bank (AIIB) President Jin Liqun said that the bank has increased its multilateral assistance to countries including Pakistan and Sri Lanka.
“While liquidity continues to tighten, we need to help those countries that are insolvent. AIIB stands ready to support the world’s most vulnerable countries, and we have increased our multilateral assistance to countries including Pakistan and Sri Lanka. In addition, we are considering post-earthquake support for Turkey,” he said during the China Development Forum (CDF) 2023, adding that the international community is confronted with multiple risks and challenges.
Prolonged high inflation, tight labour markets, and spill-over effects from high commodity prices are likely to keep central banks tightening their monetary policy all over the world, China Economic Net (CEN) reported on Tuesday. “At a time of higher debt levels, the situation may be even more troubling for some developing countries and low-income countries with high levels of debt.”
For those developing countries, higher uncertainty means a change in investors’ risk tolerance. Liqun believes that amid such pessimism, more investment is needed, especially in infrastructure.
“The development bank will continue to firmly support developing economies in building conditions for long-term economic growth,” the AIIB president said, adding that there was a need to reform the governance system, so that developing countries can be more involved and reach more consensus under the multilateral framework.
Published in The Express Tribune, March 29th, 2023.
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