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)
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Updated 29 November 2022
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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.


US freezes visa processing for 75 countries, media reports Pakistan included

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US freezes visa processing for 75 countries, media reports Pakistan included

  • State Department announces indefinite pause on immigrant visas starting Jan 21
  • Move underscores Trump’s hard-line immigration push despite close Pakistan-US ties

ISLAMABAD: The United States will pause immigrant visa processing for applicants from 75 countries starting Jan. 21, the State Department said on Wednesday, with Fox News and other media outlets reporting that Pakistan is among the countries affected by the indefinite suspension.

The move comes as the Trump administration presses ahead with a broad immigration crackdown, with Pakistan included among the affected countries despite strong ongoing diplomatic engagement between Islamabad and Washington on economic cooperation, regional diplomacy and security matters.

Fox News, citing an internal State Department memo, said US embassies had been instructed to refuse immigrant visas under existing law while Washington reassesses screening and vetting procedures. The report said the pause would apply indefinitely and covers countries across Asia, Africa, the Middle East, Europe and Latin America.

“The State Department will pause immigrant visa processing from 75 countries whose migrants take welfare from the American people at unacceptable rates. The freeze will remain active until the US can ensure that new immigrants will not extract wealth from the American people,” the Department of State said in a post on X.

According to Fox News and Pakistan news outlets like Dawn, the list of affected countries includes Pakistan, Afghanistan, Bangladesh, Iran, Iraq, Egypt, Nigeria, Russia, Somalia, Brazil and Thailand, among others. 

“The suspension could delay travel, study, and work plans for thousands of Pakistanis who annually seek US visas. Pakistani consulates in the US are expected to provide guidance to affected applicants in the coming days,” Dawn reported.

A State Department spokesman declined comment when Arab News reached out via email to confirm if Pakistan was on the list. 

The Department has not publicly released the full list of countries or clarified which visa categories would be affected, nor has it provided a timeline for when processing could resume.

Trump has made immigration enforcement a central pillar of his agenda since returning to office last year, reviving and expanding the use of the “public charge” provision of US immigration law to restrict entry by migrants deemed likely to rely on public benefits.

During his previous term as president, Trump imposed sweeping travel restrictions on several Muslim-majority countries, a policy widely referred to as a “Muslim ban,” which was challenged in US courts before a revised version was upheld by the Supreme Court. That policy was later rescinded under the President Joe Biden administration.

The latest visa freeze marks a renewed hardening of US immigration policy, raising uncertainty for migrants from affected countries as Washington reassesses its screening and vetting procedures. 

The freeze on visas comes amid an intensifying crackdown on immigration enforcement by the Trump administration. In Minneapolis last week, a US Immigration and Customs Enforcement (ICE) agent shot and killed 37-year-old Renee Good, a US citizen, during a federal operation, an incident that has drawn nationwide protests and scrutiny of ICE tactics. Family members and local officials have challenged the federal account of the shooting, even as Department of Homeland Security officials defended the agent’s actions. The case has prompted resignations by federal prosecutors and heightened debate over the conduct of immigration enforcement under the current administration.