China-led Asian Infrastructure Investment Bank (AIIB) will provide $100 million as co-financing for the M-4 Motorway Shorkot-Khanewal section.
The AIIB President Jin Liqun met Finance Minister Ishaq Dar on the sidelines of the Asian Development Bank’s annual board meeting of governors in Frankfurt, Germany and discussed opportunities for investment in Pakistan.
Mr. Jin congratulated the minister on the economic turnaround in Pakistan and said that AIIB was confident that after having achieved macro-economic stability, Pakistan was poised to move on a higher trajectory of economic growth and the AIIB is willing to continue its support in the months to come.
The World Bank expects Pakistan’s economy to accelerate to 4.5 percent in the fiscal year ending June 30, saying economic reforms and a crackdown on violence in the country’s commercial hub of Karachi has boosted investors’ confidence.
The AIIB President praised Pakistan’s rich potential in infrastructure sector and expressed his interest to finance infrastructure projects in Pakistan.
The Asian Development Bank is planning to explore opportunities of co-financing a motorway project in Pakistan with AIIB which is largely seen as a counterweight to IMF and the World Bank,
AIIB is an initiative of China to break the monopoly of international lenders such as the IMF and the World Bank. As many as 57 founding members, including Pakistan, signed the Bank’s article in June last year. China, India and Russia are the three largest shareholders of the bank.
The proposed co-financing between ADB and AIIB is for the Shorkot-Khanewal section of the M4 that runs near the $46 billion China Pakistan Economic Corridor – a landmark Chinese investment in Pakistan mainly focus on infrastructure projects.