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Govt signs agreements of $750m with WB, AIIB for RISE Programme

Govt signs agreements of $750m with WB, AIIB for RISE Programme

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

The World Bank will extend financing of US$500 million and AIIB will provide co-financing of US$250 million for the RISE programme, said a press release.

This is concessional financing in the form of budgetary support that is being provided by the two IFIs under Resilient Institutions for Sustainable Economy (RISE) and Development Policy Financing.

The financing would provide with the objective to enhancing the policy and institutional framework to improve fiscal management, and 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 US$750 million will be immediately disbursed to Pakistan in one tranche by the WB and the AIIB in next few days. The disbursements under the programme will strengthen foreign exchange reserves and provide liquidity for the economy.

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