AIIB approves $250m for Pakistan to help fight Covid-19

ISLAMABAD: The Asian Infrastructure Investment Bank’s Board of Directors has approved a loan of $250 million to help Pakistan strengthen its response to the social and economic fallout from the Covid-19 pandemic.

“Co-financed with the World Bank, this development policy financing will help bolster the government’s Resilient Institutions for Sustainable Economy (RISE) Programme, 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 Programme is a part of set of measures Pakistan has undertaken towards recovery from the impact of the pandemic,” the AIIB stated in after approval of $250 million from its headquarters in Beijing on Wednesday.

The health crisis 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. Already, employment in the formal and informal sectors has seen a downturn with the poor, women and other vulnerable groups disproportionately affected.

“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.