LETTER: This is apropos a Business Recorder news item "AIIB approves $500m loan for response" carried by the newspaper yesterday. According to it, the Beijing-backed Asian Infrastructure Investment bank (AIIB) has approved a loan of $500 million to help Pakistan battle the coronavirus pandemic. "The project co-financed by the Asian Development Bank, aims to strengthen protection for vulnerable groups, bolster the healthcare system, and help small businesses amid the economic downturn," according to the newspaper.
This development, however, underscores the need for not only prudent utilization of $500 million loan but other foreign inflows in relation to Covid-19 as well. The government is therefore required to inject transparency into disbursement of such amounts to strengthen the overwhelmed healthcare infrastructure and small businesses. This is also important to dispel doubts about government's purportedly flawed approach to spending such funds in a judicious manner. The government may also look into possibility whether or not it can renegotiate with AIIB relaxations in relation to a downward revision of mark-up and extension of repayment period.
SARMAD HABIB (ISLAMABAD)
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