The Asian Infrastructure Investment Bank (AIIB) will provide budgetary support of $500 million to Pakistan to mitigate the significant negative economic and social impacts of the Covid-19 pandemic.

Supported under the ‘Covid-19 Crisis Recovery Facility’ the AIIB loan will be co-financed by the Asian Development Bank to effectively manage the coronavirus outbreak and reduce its immediate social and economic damages.

A report of AIIB on the proposed programme says the Covid-19 pandemic has significantly impacted Pakistan’s ability to continue with the ongoing economic recovery program initiative and sustain high and inclusive growth.

ADB estimates that both exports and remittances will decline by $2 billion during the fiscal year ending June 2020.