21 °C Prince George's County, US
April 6, 2020

AIIB to Provide $100 Million for Pakistan’s Motorway Project

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.

Related articles

Pakistan Evinces Interest in FTA With Iran After Sanctions Lifted

Pakistan is interested in negotiating a Free Trade Agreement with Iran in the wake of lifting of sanctions imposed by the United Nations, a Pakistani minister said. Commerce Minister Khurram Dastgir Khan speaking with Iran’s top envoy to Pakistan Mehdi Honardost in Islamabad said a draft for such negotiations can be immediately made available if […]

PABA Celebrates Over Three Decades of Success

Pakistan American Business Association (PABA) is celebrating its 32nd anniversary this year. The Virginia-based not-for-profit business organization was formed to provide necessary guidance to new business start-ups, particularly to those immigrants who were new to this country and had a little knowledge about how the system works here. Over the years, PABA has transformed into […]