ISLAMABAD: Pakistan on Tuesday obtained $500 million from Asian Infrastructure Investment Bank (AIIB), the Ministry of Finance confirmed on Tuesday.
“Government of Pakistan has today received $500 million from AIIB. The funds are deposited with the State Bank of Pakistan (SBP) and will augment our reserves,” the ministry mentioned in a publish on its Twitter deal with.
Govt of Pakistan has right now obtained US$ 500 million from Asian Infrastructure Investment Bank (AIIB). The funds are deposited with SBP and can increase our reserves. @AIIB_Official @StateBank_Pak @MIshaqDar50
— Ministry of Finance (@FinMinistryPak) November 29, 2022
The funds by AIIB are essential for the cash-strapped nation, which has seen its international trade reserves dwindle in current months. The nation’s reserves stood at $7.eight billion as of November 18.
“During the week ended on November 18, 2022, SBP’s reserves decreased by $134 million to $7,825.7 million due to external debt repayment,” mentioned the SBP in a press release on Friday.
It is pertinent to say right here that the SBP obtained $1.5 billion from ADB on October 26, 2022 as a disbursement of mortgage for the federal government of Pakistan.
Last month, the ADB signed an settlement with Pakistan to offer a $1.5 billion mortgage for budgetary help and assist flood-related rehabilitation and reconstruction actions.
The mortgage, offered underneath the BRACE Programme, was offered to fund the federal government’s $2.3bn countercyclical improvement expenditure programme designed to cushion the impacts of exterior shocks, together with the Russian invasion of Ukraine.