ISLAMABAD: The Asian Infrastructure Investment Bank (AIIB) has reaffirmed its commitment to expanding development cooperation with Pakistan following the country’s recent Panda Bond launch, with both sides discussing deeper collaboration in infrastructure financing, private-sector investment and long-term economic development.
The understanding emerged during a meeting between Pakistan’s Federal Minister for Economic Affairs Ahad Cheema and AIIB President Zou Jiayi, where both sides reviewed ongoing cooperation and explored future strategic priorities.
According to officials, the AIIB president reaffirmed that Pakistan remains a key strategic partner of the Beijing-based multilateral lender, noting that the Bank’s overall portfolio in Pakistan currently stands at nearly US$3.5 billion.
The discussions come shortly after Pakistan launched its inaugural Panda Bond programme in China, a move seen as part of Islamabad’s broader efforts to diversify financing sources and strengthen economic cooperation with Beijing.
Future development priorities
Zou Jiayi sought details regarding Pakistan’s development priorities for the next three to five years to ensure that future AIIB engagement remains aligned with the country’s infrastructure and economic agenda.
She also expressed the Bank’s interest in expanding operations in Pakistan beyond sovereign financing by exploring non-sovereign interventions and greater collaboration with the private sector.
During the meeting, Cheema congratulated the AIIB president on assuming office and expressed confidence that Pakistan’s partnership with the institution would further strengthen under her leadership.
The minister acknowledged AIIB’s ongoing portfolio of US$1.387 billion in Pakistan and appreciated the Bank’s continued support for the country’s development priorities.
Infrastructure and economic focus
Cheema highlighted the government’s strategic focus on major federal infrastructure projects, particularly in the railway, road and power sectors, stressing the importance of high-impact initiatives capable of delivering substantial economic benefits.
He emphasised the need to modernise Pakistan’s railway system, especially freight movement and logistics infrastructure, saying greater efficiency in the sector could significantly improve economic productivity.
The minister also called for closer alignment between AIIB financing and Pakistan’s infrastructure priorities, specifically referring to projects such as the Main Line-1 Railway Project (ML-1), the N-5 National Highway Phase-II project, and the modernisation of electricity transmission and distribution systems.
Cheema further proposed the establishment of an AIIB office in Pakistan to improve coordination and deepen institutional engagement.
He additionally encouraged stronger AIIB cooperation with Pakistan’s private sector, particularly in agriculture and value-chain development, to support sustainable economic growth.
