Beijing, China, June 18, 2020

AIIB Supports Pakistan’s Efforts to Manage COVID-19 with USD500-M Loan

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a loan of USD500 million for the COVID-19 Active Response and Expenditure Support (CARES) Program to support the Government of Pakistan’s efforts to effectively manage the COVID-19 outbreak and reduce its immediate social and economic impacts.

Pakistan’s ongoing economic recovery and ability to sustain high and inclusive growth have been significantly impacted by the COVID-19 pandemic. According to estimates by the International Monetary Fund (IMF), the country’s remittances will decline by around USD5 billion for FY2020 and FY2021 and export growth is likely to come to a halt due to the fall in external demand. Total revenue is expected to decline by more than USD6 billion in FY2020, which will contribute to increasing Pakistan’s primary fiscal deficit by about 2 percentage points. These impacts have already led to significant job losses, both in the formal and informal sectors.

AIIB’s financing for CARES, funded under the Bank’s COVID-19 Crisis Recovery Facility (CRF) and cofinanced with the Asian Development Bank (ADB), will promote social protection and economic resilience to prevent long-term damage to the productive capacity, including human capital, of Pakistan’s economy.

This policy-based loan is provided through general budgetary support to fill the government’s financing gaps in implementing health, social safety net and economic stimulus measures. The funds will support expenditures allocated by the government for protecting the poor and vulnerable, including women, augmenting the health sector capacity and supplies, and protecting productive sectors and small businesses from economic downturn.

“By supporting industries and vulnerable groups that have been hard hit by COVID-19, this financing will help mitigate the economic shock and social impacts the country is currently facing,” said AIIB Vice President, Investment Operations, Konstantin Limitovskiy. “Preventing long-term damage to the productive capacity of the economy is essential. AIIB’s joint efforts with the international community are targeting this need.”

While AIIB does not have a regular instrument for policy-based financing, the Bank is extending such financings on an exceptional basis under the CRF to support its members through programs cofinanced with the World Bank or the ADB.

The CRF, created as part of the coordinated international response to counter the COVID-19 crisis, has an initial size of USD5-10 billion to support AIIB members’ urgent economic, financial and public health financing needs and quick recovery from the crisis. AIIB is currently reviewing additional projects from its clients. Projects being proposed under the CRF can be found here. Additional information about the Pakistan CARES Program can be found here.

 

About AIIB

The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, we began operations in January 2016 and have now grown to 102 approved members worldwide. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, we will better connect people, services and markets that over time will impact the lives of billions and build a better future.

 

Logos for Download

Our logo is available in JPEG and PDF format.

DOWNLOAD


Media Contact

Lingxiao He

Press Officer

+86 10 8358 0683

SEND AN EMAIL

More News Articles

Beijing, January 09, 2023

AIIB Welcomes Mauritania as New Prospective Member

The Asian Infrastructure Investment Bank’s (AIIB) Board of Governors has approved Mauritania’s application, raising the Bank’s approved membership to 106. Mauritania is now AIIB’s 55th nonregional member, 21 of which are from Africa.

READ MORE

Beijing, December 30, 2022

AIIB Extends EUR250M to Support Egypt’s Green Public Transportation

The Asian Infrastructure Investment Bank’s (AIIB) Board of Directors has approved a EUR250-million loan to Egypt for the Alexandria-Abou Qir Metro Line Project. Aiming to increase access to efficient, safe and low-carbon public transportation in the city of Alexandria, the project will upgrade and electrify the existing Alexandria-Abou Qir line. Twenty metro stations along the 22-kilometer corridor will be modernized, 13 stations and 16 kilometers of which will be elevated.

READ MORE

Beijing, December 12, 2022

AIIB Reinforces Commitment to Support Members’ Clean Energy Solutions

The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved an update to the Bank’s Energy Sector Strategy on Nov. 22, 2022. Under the updated Energy Sector Strategy, AIIB will focus its energy investments on supporting its Members to achieve their long-term climate goals and net-zero/carbon neutrality commitments and to accelerate the just transition towards secure, affordable, and sustainable energy access for all.

READ MORE

Beijing, December 07, 2022

AIIB Signs USD200-M On-Lending Facility to Boost Türkiye’s Climate Mitigation and Adaptation Efforts

The Asian Infrastructure Investment Bank (AIIB) and the Industrial Development Bank of Türkiye (Türkiye Sınai Kalkınma Bankası A.Ş. or TSKB) have signed a USD200-million on-lending facility to contribute to the Republic of Türkiye’s climate mitigation and adaptation goals in line with the Paris Agreement.

READ MORE

Home News and Insights Media Center News AIIB Supports Pakistan’s Efforts to Manage COVID-19 with USD500-M Loan