ISLAMABAD, November 5, 2024: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Tuesday expressed his satisfaction with the progress of ongoing projects funded by the Asian Infrastructure Investment Bank (AIIB) in Pakistan, while emphasizing the need for further efforts to accelerate the disbursement of these projects.
Senator Aurangzeb was speaking during a meeting with a delegation from AIIB, led by Mr. Konstantin Limitovskiy, Vice President of the Client Region and Project Finance Global.
The meeting, held at the Finance Division, focused on the bank’s portfolio of investments in Pakistan, including projects related to hydropower generation, road and transport infrastructure, urban development, and climate resilience.
The delegation provided an update on the status of AIIB’s current projects, highlighting key initiatives aimed at addressing the impacts of climate change, natural disasters, and health crises like pandemics.
The discussion also touched on the issue of Pakistan’s surplus power generation capacity and the need to shift AIIB’s focus from power generation to strengthening the country’s transmission and distribution systems, to ensure the efficient evacuation of power.
Mr. Limitovskiy reiterated AIIB’s strong commitment to Pakistan, recognizing the country as a key partner. He affirmed the bank’s ongoing support in helping Pakistan achieve its development goals, with a particular emphasis on climate resilience, disaster preparedness, and addressing the challenges posed by climate change.
Minister Aurangzeb, while acknowledging the bank’s significant contributions, praised AIIB’s technical and financial support, especially in the areas of disaster recovery and climate adaptation.
He stressed the importance of expediting the disbursement of funds for ongoing projects to ensure timely progress.
In addition, the Finance Minister recalled his recent meeting with AIIB President, Mr. Jin Liqun, in Washington, where they discussed Pakistan’s interest in diversifying its sources of financing.
One of the proposals explored was the issuance of a Panda bond, with AIIB potentially playing a pivotal role in facilitating the issuance through a partial guarantee to bolster market confidence.
The meeting underscored the deepening collaboration between Pakistan and AIIB, as both parties work together to address the country’s infrastructure needs and its pressing climate challenges.