Three International Financial Institutions to give $ 1.5 Billion to Pakistan
Pakistan and three international financial institutions (IFIs), including World Bank (WB), Asian Development Bank (ADB), and Asian Infrastructure Investment Bank (AIIB), have signed a $1.5 billion loan agreement as each of the IFI has provided $500 million facilities.
Current Time 0:50/Duration 0:50Pakistan signs $1.5b loan accords with WB, ADB, AIIBISLAMABAD: Pakistan and three international financial institutions (IFIs) including World Bank (WB), Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) have signed $1.5 billion loans agreement as each of the IFI has provided $500 million facilities.
Prime Minister Imran Khan observed the signing commemoration of the financing deals with the World Bank (WB), the Asian Development Bank (ABB), and the Asian Infrastructure Development Bank (AIIB).
The AIIB collaborated with ADB as a co-financer and granted $500 million each, so the cumulative lending amount reached $1billion. “There are not any conditions attached by the AIIB for providing this budgetary support of $500 million at this challenging time,” said top official sources while lecturing The News here Friday. These three lenders had approved their loan facility separately in past weeks, and they signed an equivalent with the govt of Pakistan here on Friday.
According to the official release of the Economic Affairs Division (EAD), Prime Minister Imran Khan observed the signing ceremony of the financing deals meriting $1.5 billion with the three IFIs.
This is concessional funding within the class of budgetary assistance given by the three IFIs, which will help decrease the socio-economic repercussions of COVID-19 pandemic and restore health, education, and social safety nets systems. The three programs’ details are:
COVID-19 Active Response and Expenditure Support Programme (CARES) US$ 500 million: The Asian Development Bank is increasing $500 million for this program to help the administration of Pakistan’s efforts to restore the health system and alleviate it socio-economic impacts of the COVID-19 pandemic.
The AIIB is stretching co-financing of $500 million for the CARES to expand the government’s struggles to alleviate the direct and indirect consequences of COVID-19 pandemic.
The range of the CARES program covers, social security for the poor and vulnerable, an increased health sector acknowledgment to the pandemic, and a pro-poor monetary stimulus package to guarantee an improvement in growth and employment.
Securing Human Investments to Foster Transformation (SHIFT) $500 million: It strives to strengthen the Civil Registration and Vital Statistics, health, and education systems necessary for human capital augmentation; recognize and promote the contribution of women to economic richness; and develop the efficiency of the national safety nets.
Noor Ahmed, Secretary Ministry of Economic Affairs, signed the three loan agreements on behalf of the Pakistan government. In contrast, as Patchamuthu Illangovan, Country Director WB Ms. Xiaohong Yang, and vice president, country director, ADB, and Konstantin Limitovsriy, Vice President, AIIB signed agreements on behalf of the World Bank, Asian Development Bank, and AIIB respectively. The disbursement of $1,500 million will be made to Pakistan in the next few days.
The country executives of WB and ADB restated their dedication to helping Pakistan and welcomed the government’s solutions, efforts, and actions to combat the pandemic.
Makhdoom Khusro Bakhtyar, Minister for Economic Affairs, while praising the three IFIs for their extended aid, particularly in events of pandemic emergency, declared that this shows the reliance of the IFIs and the international development community in government’s policies and endeavors for pursuing structural reforms process.