Pakistan signs $1.5 billion loan agreement with IFIs to strengthen Covid-19 response

Mon, June 22, 2020

ISLAMABAD: The government has signed financial agreements worth $1.5 billion with the three International Financial Institutions (IFIs) – World Bank (WB), Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB) – to strengthen its response to the Covid-19 pandemic.

Economic Affairs Secretary Noor Ahmed signed the three loan agreements with WB country director Patchamuthu Illangovan and ADB country director Xiaohong Yan

The ADB is extending financial support of $500 million under Covid-19 Active Response and Expenditure Support Program (CARES) with the objective to support Pakistan’s efforts to strengthen the health system and mitigate socioeconomic impacts of the Covid-19 pandemic.

“The AIIB is extending co-financing of $500 million for the CARES to augment the government’s efforts to mitigate the direct and indirect impacts of coronavirus outbreak,” the official communique said.

Whereas, $500 million will be spent on Securing Human Investments to Foster Transformation (SHIFT) which “aims to strengthen the Civil Registration and Vital Statistics, health and education systems essential for Human Capital (HC) accumulation; recognise and support the contribution of women to economic productivity; and improve efficiency of the national safety nets”.

The disbursement of $1.5 billion will be disbursed to Pakistan in next few days, read the statement.

g on behalf of all three financial institutions, according to an official statement.

Prime Minister Imran Khan witnessed the signing ceremony held in Islamabad on Friday.

Published in The Express Tribune, 19th June 2020

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