Pakistan, IsDB agree to enhance bilateral economic cooperation

ISLAMABAD: Pakistan and Islamic Development Bank (IsDB) on Monday discussed the ongoing economic cooperation and also agreed to further enhance the bilateral ties.

Pakistan is the founding member of the Bank.IsDB is an important multilateral development bank with 57-members, said a press release issued by Ministry of Economic Affairs here.

President, Islamic Development Bank (IsDB)Dr Muhammad Al-Jasser, called on Federal Minister for Economic Affairs, Omar Ayub Khan in Islamabad.Pakistan is the 2nd largest beneficiary of the IsDB financing. Since its inception, IsDB has approved US$ 13.6 billion financing for Pakistan.

The IsDB’s financing for Pakistan is covering all the major sectors of economy such as Energy, Industry, Agriculture, Transport, Health and Financial Services.

President, Islamic Development Bank (IsDB), Dr. Muhammad Al-Jasser, who is in Islamabad on a four-day visit to attend the 17th Extraordinary Session of the OIC on Afghanistan, called on Federal Minister for Economic Affairs, Omar Ayub Khan, and Governor of the IsDB in the Ministry of Economic Affairs, Islamabad.

The President, IsDB assured his strong commitment to further strengthening and expanding its partnership with Pakistan.

Dr. Muhammad Al-Jasser reiterated that IsDB is one of the leading development partners of Pakistan and fully supports Government of Pakistan’s development vision and priorities.He assured the Minister that the Bank will continue to mobilize more financial resources for developing infrastructure, uplifting social sector and achieving sustainable economic growth.

It was also assured that IsDB will continue to leverage private financing to support trade needs including import of petroleum products. During the meeting, a financing agreement of US$ 72.5 million for procurement of COVID-19 vaccine was signed between the Islamic Development Bank and Economic Affairs Division.

The Bank’s financing for procurement of COVID-19 vaccine will help to contain the spread of COVID pandemic.The President, IsDB further updated that the Bank has also approved US$ 180 million financing for Mohmand Dam Hydropower Project.

Omar Ayub Khan, thanked the President, IsDB for visiting Islamabad and his continued support to Pakistan. He applauded IsDB’s role to support the member countries in COVID-19 response, recovery and procurement of vaccine and saving lives and livelihood amid pandemic.

The Minister also thanked the President, IsDB for his resolve to support financing needs of the country in future.He greatly appreciated IsDBs support in green and clean energy development projects, like Mohmand Dam Hydropower Project, which will not only generate 800 MW electricity, but also enhance Pakistan’s Water Storage Capacity by 1,293 million acre feet (MAF), create food security buffer, provide 13.32 cusec of clean drinking water to the residents of Peshawar City and will create more than 6,000 direct new employment opportunities for the local people.

The Minister for Economic Affairs appreciated the role and endeavors of President IsDB and his team for arranging this financing at a very challenging time.

The President, IsDB assured to further strengthen partnership between Islamic Republic of Pakistan and IsDB. It was also highlighted that IsDB doesn’t have regional office in Pakistan like in Turkey and some other member countries.During the discussions, Minister for Economic Affairs underlined the need to have a regional office in Islamabad for better collaboration and engagement with the Bank.