The aid is to weather possible economic shocks, Kamal tells the Bank’s 7th annual meeting
Bangladesh has sought extended assistance, especially budget support, from the Asian Infrastructure Investment Bank (AIIB), officials said here on Wednesday.
Amid the volatile global scenario, Finance Minister AHM Mustafa Kamal on Wednesday requested the AIIB to extend its financial support for weathering the possible shocks on the Bangladesh economy.
He was speaking at the inaugural session of the two-day 7th Annual Meeting of the AIIB. A Bangladesh delegation, led by the finance minister, took part in the meeting virtually from Dhaka.
The Beijing-based lender has so far made a lending commitment of US$2.84 billion for 15 ongoing projects since its establishment in 2016, Economic Relations Division (ERD) data showed.
In 2021, the AIIB provided $300 million worth of budget support to tackle the impact of the Covid-19 pandemic.
Since the global economies are under pressure due to the Russia-Ukraine war and the global price spiral after the Covid-19 pandemic, Mr Kamal said the AIIB and other development partners should come forward to help the poor countries like Bangladesh.
“Bangladesh wants to be a developed nation by 2041. So, the country needs support from all the global development partners, including the AIIB,” he said.
Meanwhile, AIIB’s President Jin Liqun said that while developing Asia is estimated to grow at 5.2 per cent in 2023, debt sustainability is at risk in several AIIB members more than before, with shrinking fiscal space, global monetary tightening and capital outflows from the emerging and developing economies.
“Managing debt levels and fiscal pressures will remain challenging for many economies, adversely affecting public infrastructure spending,” he added.
The AIIB president stressed on the need for increased regional cooperation and connectivity to enhance business certainty and reboot the global economy at a time when the world is becoming more divided.
It is imperative for us to promote multilateral cooperation and contribute to global governance through joint efforts with the international community, he added.
He said the AIIB’s mission is more important than ever at a time when climate change, Covid-19, conflicts and economic challenges are among the concurrent crises of global concern.
“These crises are all in the news,” he said. “But behind the headlines, these are serious problems inflicting hardship and harm on the world’s most vulnerable populations.”
