ISLAMABAD: The government has signed two financing agreements valuing $750 million with the World Bank (WB) and the Asian Infrastructure Development Bank (AIIB).
The World Bank will extend financing of $500 million and Chinese-headquartered AIIB will provide co-financing of $250 million for the Resilient Institutions for Sustainable Economy (RISE) program.
Secretary Ministry of Economic Affairs Noor Ahmed signed the two loan agreements on behalf of the government of Pakistan while World Bank Country Director Patchamuthu Illangovan, and Asian Infrastructure Investment Bank (AIIB) Vice President Konstantin Limitovsriy signed the agreements on behalf their institutions respectively.
READ MORE: AIIB approves $250 million loan to mitigate COVID-19 impact
This is concessional financing in the form of budgetary support that is being provided by the two global financial institutions with the objective to enhancing the policy and institutional framework to improve fiscal management, and improving the regulatory framework to foster growth and competitiveness.
The efforts aimed at strengthening fiscal management will support the ongoing stabilization efforts of the government. The program also includes actions that respond to the immediate COVID-19 pandemic needs and address medium-term reforms.
Upon signing of the loan agreements, the amount of $750 million will be immediately disbursed to Pakistan in one tranche in the next few days. The disbursements under the program will strengthen foreign exchange reserves and provide liquidity for the economy.
ADVERTISEMENT
