Pakistan and AIIB sign $500 million loan agreement under BRACE initiative

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KARACHI – Pakistan and the Asian Infrastructure Investment Bank (AIIB) have signed a $500 million loan agreement that will provide respite to the South Asian country’s strained economy.

The AIIB is providing the loan under the Building Resilience with Active Countercyclical Expenditures (BRACE) program, which is a financing initiative of the Asian Development Bank (AfDB) aimed at building the resilience of poor and vulnerable groups to socio-economic shocks. economic.

“The agreement was signed on the AIIB side by Konstantin Likitovskiy, Vice President of Investment Operations, and Awais Manzoor Sumra, Special Secretary for Finance on the Pakistani side,” the finance ministry said in a statement on Twitter.

He added that “the signing took place during the COP27 meetings in Sharm el-Sheikh in Egypt and in the presence of the Minister of Climate Change”.

Earlier this week, Finance Minister Ishaq Dar revealed that the AIIB board had approved the $500 million loan program for Pakistan.

“The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) today approved $500 million as co-financing for the Asian Development Bank-funded BRACE program for Pakistan,” said Dar. in a post on Twitter.

“These funds will be received by the State Bank of Pakistan in November 2022,” he announced.

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