AIIB and World Bank approve $600m for Rise-II

The Asian Infrastructure Investment Bank (AIIB) and the World Bank will co-finance Pakistan’s second Resilient Institutions for Sustainable Economy (Rise-II) programme with a $600 million loan, aiming to enhance the policy and institutional framework to improve fiscal management and regulatory conditions that support growth and competitiveness. According to the cost and financing plan, AIIB will provide $250m for Rise-II, while the World Bank will contribute $350m through the International Development Association (IDA). The objectives of the second programme are to strengthen Pakistan’s macroeconomic management, fostering sustained and inclusive growth by mitigating the socioeconomic effects of the Covid-19 pandemic and other shocks. This proposed operation will provide external financing to help the government implement critical policy reforms, accelerating economic recovery and laying the foundations for sustainable growth. Specifically, Rise-II addresses key institutional and policy constraints for effective fiscal management and private sector investments, aiming to induce economic growth and reduce poverty by improving the policy and institutional framework for fiscal management and enhancing the regulatory framework for growth and competitiveness, project document says.