ISLAMABAD: The Asian Infrastructure Investment Bank’s (AIIB) board of directors has approved a $250 million loan to help Pakistan strengthen its response to the social and economic fallout from the coronavirus pandemic, according to reports released by Market Screener.

Co-financed by the World Bank, this money will help strengthen the government’s Resilient Institutions for Sustainable Economy (RISE) programme, which aims to encourage investment in human capital, improve lives of vulnerable families and individuals, reduce the adverse health and economic shocks, and boost economic growth.

According to the MarketScreener report, the health crisis is expected to have a far ranging and long-term effect on growth, which may undermine the hard-fought progress the country has made in restoring macroeconomic stability.

Employment in the formal and informal sectors has already seen a downturn with the poor, women and other vulnerable groups disproportionately affected. The programme is, therefore, part of set of measures taken by the government of Pakistan to reduce the significant negative health, social, and economic impacts of the COVID-19 pandemic.

‘The pandemic has rapidly evolved in Pakistan and now threatens to undo many of the hard-won gains made in reducing poverty over the past two decades,” AIIB Vice President of Investment Operations Konstantin Limitovskiy said. “Our immediate support is critical and will contribute to the government’s efforts to mitigate pandemic-related shocks, so that the country may continue on its path to sustainable development.”

Previously, the AIIB board of directors approved a loan of $500 million for the COVID-19 Active Response and Expenditure Support (CARES) programme.

The latest loan brings the total AIIB support to Pakistan to $750 million.