RISE programme $750m agreements signed with WB, AIIB

ISLAMABAD: Pakistan on Thursday signed two loan agreements valuing $750 million with the World Bank (WB) and the Asian Infrastructure Investment Bank (AIIB) for the Resilient Institutions for Sustainable Economy (RISE) programme.

The World Bank will extend a loan of $500 million and Asian Infrastructure Investment Bank (AIIB) will provide co-financing of $250 million for the programme.

In a statement, the Economic Affairs Division (EAD) said it was a concessional financing in the form of budgetary support being provided by the two IFIs under the Resilient Institutions for Sustainable Economy (RISE), Development Policy Financing with the objective to (i) enhancing the policy and institutional framework to improve fiscal management, and (ii) 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 programme also includes actions that respond to the immediate Covid-19 pandemic needs and addresses medium-term reforms.

Upon signing of the loan agreements, the amount of $750 million will be immediately disbursed to Pakistan in one tranche by the WB and the AIIB in the next few days.

The disbursements under the programme would strengthen the foreign exchange reserves and provide liquidity for the economy.

Noor Ahmed, Secretary Ministry of Economic Affairs, signed the two loan agreements on behalf of the Government of Pakistan, while Patchamuthu Illangovan, Country Director World Bank (WB), and Konstantin Limitovsriy, Vice President, Asian Infrastructure Investment Bank (AIIB), signed the agreements on behalf of the WB and AIIB respectively.