AIIB approves $250mn loan to Pakistan to combat COVID-19

The China-backed Asian Infrastructure Investment Bank (AIIB) would lend $250 million to Pakistan to help the country deal with the effects of the COVID-19 pandemic.

The bank informed on Wednesday, that the project will be cofinanced with the World Bank, and will help bolster the government’s Resilient Institutions for Sustainable Economy (RISE) Program, which aims to stimulate investment in human capital, expand social safety nets, improve the country’s emergency health infrastructure and foster economic growth.

The RISE Program is a part of a set of measures Pakistan has undertaken toward recovery from the impact of the pandemic.

“The pandemic has rapidly evolved in Pakistan and now threatens to undo many of the hard-won gains made in reducing poverty over the past two decades,” said AIIB Vice President, Investment Operations, Konstantin Limitovskiy. “Our immediate support is critical and will contribute to the government’s efforts to mitigate pandemic-related shocks, so that the country may continue on its path to sustainable development,” he added.

AIIB is of the view that the ongoing pandemic is expected to have far-ranging and long-term repercussions on growth, which may undermine the hard-fought progress the country has made in restoring macroeconomic stability.

The latest loan brings AIIB total support to Pakistan’s COVID-19 response to USD750 million.