Finance Minister Ishaq Dar reported on Tuesday that the State Bank of Pakistan had received Rs500 million from the Asian Infrastructure Investment Bank (AIIB).
The minister posted on Twitter, “AIIB has transferred today, as per their board’s permission, to State Bank of Pakistan/Government of Pakistan $500 million as program finance.”
The finance minister had earlier this month stated that Pakistan would receive the money as co-financing for a development program.
To combat the social effects of the economic crisis, the Asian Development Bank (ADB) has funded the Building Resilience with Active Countercyclical Expenditures Programme.
An agreement between the ADB and Pakistan was inked last month to offer a $1.5 billion loan for budgetary support as well as assistance with flood-related repair and reconstruction efforts.
The government’s $2.3 billion countercyclical development spending program, created to lessen the effects of external shocks like the Russian invasion of Ukraine, was funded in part by a loan issued under the BRACE Program.
The $1.5 billion loan was intended to boost employment for individuals in the midst of disastrous floods and interruptions to the global supply chain while also promoting food security and social protection.
The State Bank later announced that it had received $1.5bn from the ADB “as disbursement of policy-based loan for the government of Pakistan”.