Asian Infrastructure Investment Bank transfers $500 million in program financing to Pakistan

The sign of the Asian Infrastructure Investment Bank (AIIB) in Beijing, China, on August 3, 2020. (Xinhua/File)
Short Url
Updated 29 November 2022
Follow

Asian Infrastructure Investment Bank transfers $500 million in program financing to Pakistan

  • AIIB has provided loan under Building Resilience with Active Countercyclical Expenditures program
  • ADB financing initiative will enhance resilience of poor and vulnerable groups to socio-economic shocks

ISLAMABAD: The Asian Infrastructure Investment Bank (AIIB) on Tuesday transferred $500 million in program financing to the government of Pakistan, the country’s finance minister Ishaq Dar said.

The loan would help the South Asian country mitigate the adverse socio-economic effects of economic crises, aggravated by recent floods that have affected 33 million people. Pakistani authorities estimate the damage incurred losses between $10 billion to $40 billion.

“Asian Infrastructure Investment Bank (AIIB) has transferred today, as per their Board’s approval, to State Bank of Pakistan/Government of Pakistan US $500 million as program financing,” Dar announced on Twitter.

The AIIB has provided the loan under the Building Resilience with Active Countercyclical Expenditures (BRACE) program, which is an Asian Development Bank (ADB) financing initiative to enhance the resilience of poor and vulnerable groups to socio-economic shocks. 

“The agreement was signed from the AIIB side by Konstantin Likitovskiy, Vice President of Investment Operations, and Awais Manzoor Sumra, special secretary of finances from the Pakistani side,” the finance ministry said in a statement earlier this month.

The cash-strapped South Asian country desperately needs dollar inflows to boost its depleting foreign exchange reserves and cool down its currency market, where the local currency is trading at historic lows against the United States (US) dollar. 

Pakistan recently received $1.5 billion in inflows from the ADB but the amount failed to ease off the pressure on the rupee. 

Pakistan is also expected to receive around $400 million from the World Bank under the Resilient Institutions for Sustainable Economy (RISE-II) program. RISE-II had been delayed to accommodate the processes required by the government to implement the reforms outlined in the program.


Sindh assembly passes resolution rejecting move to separate Karachi

Updated 21 February 2026
Follow

Sindh assembly passes resolution rejecting move to separate Karachi

  • Chief Minister Shah cites constitutional safeguards against altering provincial boundaries
  • Calls to separate Karachi intensified amid governance concerns after a mall fire last month

ISLAMABAD: The provincial assembly of Pakistan’s southern Sindh province on Saturday passed a resolution rejecting any move to separate Karachi, declaring its territorial integrity “non-negotiable” amid political calls to carve the city out as a separate administrative unit.

The resolution comes after fresh demands by the Muttahida Qaumi Movement (MQM) and other voices to grant Karachi provincial or federal status following governance challenges highlighted by the deadly Gul Plaza fire earlier this year that killed 80 people.

Karachi, Pakistan’s largest and most densely populated city, is the country’s main commercial hub and contributes a significant share to the national economy.

Chief Minister Syed Murad Ali Shah tabled the resolution in the assembly, condemning what he described as “divisive statements” about breaking up Sindh or detaching Karachi.

“The province that played a foundational role in the creation of Pakistan cannot allow the fragmentation of its own historic homeland,” Shah told lawmakers, adding that any attempt to divide Sindh or separate Karachi was contrary to the constitution and democratic norms.

Citing Article 239 of Pakistan’s 1973 Constitution, which requires the consent of not less than two-thirds of a provincial assembly to alter provincial boundaries, Shah said any such move could not proceed without the assembly’s approval.

“If any such move is attempted, it is this Assembly — by a two-thirds majority — that will decide,” he said.

The resolution reaffirmed that Karachi would “forever remain” an integral part of Sindh and directed the provincial government to forward the motion to the president, prime minister and parliamentary leadership for record.

Shah said the resolution was not aimed at anyone but referred to the shifting stance of MQM in the debate while warning that opposing the resolution would amount to supporting the division of Sindh.

The party has been a major political force in Karachi with a significant vote bank in the city and has frequently criticized Shah’s provincial administration over its governance of Pakistan’s largest metropolis.

Taha Ahmed Khan, a senior MQM leader, acknowledged that his party had “presented its demand openly on television channels with clear and logical arguments” to separate Karachi from Sindh.

“It is a purely constitutional debate,” he told Arab News by phone. “We are aware that the Pakistan Peoples Party, which rules the province, holds a two-thirds majority and that a new province cannot be created at this stage. But that does not mean new provinces can never be formed.”

Calls to alter Karachi’s status have periodically surfaced amid longstanding complaints over governance, infrastructure and administrative control in the megacity, though no formal proposal to redraw provincial boundaries has been introduced at the federal level.