The State Bank of Pakistan (SBP) on Tuesday received $500 million from the Asian Infrastructure Investment Bank (AIIB), Finance Minister Ishaq Dar confirmed.
“The Asian Infrastructure Investment Bank (AIIB) has today, as per the approval of its Board, transferred USD 500 million as program financing to the State Bank of Pakistan/Government of Pakistan,” the finance minister tweeted.
Asian Infrastructure Investment Bank (AIIB) has transferred today, as per their Board’s approval, to State Bank of Pakistan/Government of Pakistan
— Ishaq Dar (@MIshaqDar50) November 29, 2022
US $ 500 million as program financing.
Earlier this month, Dar announced that the AIIB would provide $500 million to support development programs in Pakistan.
“These funds will be received by State Bank of Pakistan by November 2022,” Dar tweeted, as cash-strapped Pakistan scrambles for financial assistance to mitigate the effects of the floods.
Board of Asian Infrastructure Investment Bank (AIIB) has today approved USD 500 million as co-financing of Asian Development Bank (ADB) funded BRACE program for Pakistan.
— Ishaq Dar (@MIshaqDar50) November 9, 2022
These Funds will be received by State Bank of Pakistan within November 2022.
BRACE (Building Resilience with Active Countercyclical Expenditures Programme) is an Asian Development Bank (ADB) financing program to combat the social consequences of economic crises.
These funds will help increase the foreign exchange reserves held by the central bank.
Reserves are critical for the country during the current situation, where it has to import food items after devastating floods destroyed agricultural crops and caused more than $30 billion in losses.
In October, the Asian Development Bank (ADB) also pledged to help Pakistan provide social security, promote food security and create employment opportunities for its people amid devastating floods and global supply chain disruptions. Approved $1.5 billion in financing.
Loans under ADB’s BRACE program will help fund the government’s $2.3 billion countercyclical development spending program designed to cushion the impact of external shocks, including the Russian invasion of Ukraine.
