The government has signed two financing agreements valuing $ 750 million with the World Bank (WB) and the Asian Infrastructure Development Bank (AIIB) for the Resilient Institutions for Sustainable Economy (RISE) program.
Under the agreement, the WB will extend financing of $500 million, whereas, AIIB will provide co-financing of US$250 million for the RISE program.
As per details this is a concessional financing in the form of budgetary support that is being provided by the two IFIs under Resilient Institutions for Sustainable Economy (RISE), Development Policy Financing with the objective to (i) enhancing the policy and institutional framework to improve fiscal management, and (ii) improving the regulatory framework to foster growth and competitiveness.
The agreements will strengthen the country’s fiscal management and will support the ongoing stabilization efforts of the government. The program 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 $750 million will be immediately disbursed to Pakistan in one tranche by the WB and the AIIB in next few days. The upcoming disbursements will strengthen foreign exchange reserves and provide liquidity for the economy.