The AIIB Has Potential To Finance All Of Asian Infrastructuring
The Pakistani FM said recently that the China-proposed Asia Infrastructure Investment Bank (AIIB) has a great potential to lure bulks of infrastructure funding worldwide to benefit the whole Asia.
Ishaq Dar, Pakistan’s finance chief, made the remarks on the sidelines of a joint media briefing of Pakistan and the international monetary fund (IMF).
Pakistan is a founding member of the AIIB, and is looking forward to working closely together with the bank, he said.
“Asia has an appetite for around 70% of the world’s available infrastructure funding, but the region gets only 30%. Therefore, Pakistan expects the AIIB to be complementary in order to meet the availability of global funding and to reduce the demand gap for the funding,” he added.
Also on Friday, Dar joined the IMF mission chief for Pakistan, and announced the international lender would make another US$502-M loan for Pakistan based on the 3-yr extended fund facility worth US$6.2-B.
Earlier in the year, Masood Ahmed, the IMF director Middle East and Central Asia, told Xinhua the IMF welcomed the formation of the AIIB.
Ahmed, a Pakistani economist, ruled out that the AIIB would pose a threat to the influence of his Washington-based international organization in the Middle East and Central Asia region.
“We welcome the AIIB to provide financing to countries which are in need of investments in their infrastructure,” Ahmed told Xinhua.
He pointed out that the IMF, which has 188 member states, and the AIIB follow different purposes albeit that both institutions provide loans.
“Unlike the AIIB, the IMF does not provide financing for infrastructure in East Asia and Central Asia and other parts of the world,” he said.
The bank now has 57 founding members. It will have authorized capital of US$100-B. Asian countries will contribute up to 75% of the total capital and be allocated a share of the quota based on their economic size.
China, India and Russia are the 3 largest shareholders, with a voting share of 26.06%, 7.5% and 5.92%, respectively.
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Paul Ebeling
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