AIIB seeks private-sector financing expansion in Pakistan

BR Web Desk

Published Date: May 19, 2026

Published On: Brecorder

The Asian Infrastructure Investment Bank (AIIB) has signalled plans to deepen its engagement in Pakistan by exploring non-sovereign and private-sector financing opportunities, a move that could unlock fresh investment avenues beyond traditional government-backed infrastructure lending.

The development came during a meeting between Federal Minister for Economic Affairs, Ahad Cheema, and President of the AIIB, Zou Jiayi, as read in an official statement on Tuesday.

As per the statement, the President of AIIB reaffirmed that Pakistan remains a strategic development partner of the Bank, with an overall portfolio amounting to almost $3.5 billion.

She inquired about Pakistan’s strategic priorities for the next three to five years to ensure that AIIB’s future engagement is closely aligned with the country’s development priorities.

The president further conveyed the bank’s interest in expanding its operations in Pakistan beyond sovereign financing by exploring opportunities for non-sovereign interventions, thereby strengthening collaboration with the private sector and broadening the scope of development cooperation.

Cheema also acknowledged AIIB’s ongoing portfolio of $1.387 billion in Pakistan and conveyed appreciation for the bank’s continued support toward the country’s development priorities.

The minister highlighted the vast potential of Pakistan’s railway system, noting that modernisation of freight movement and logistics would significantly enhance efficiency and strengthen overall economic productivity.

He emphasised the importance of aligning AIIB’s engagement with Pakistan’s infrastructure priorities, citing transformative projects such as the Main Line-1 Railway Project (ML-1), N-5 National Highway Phase-II, and the modernisation of electricity transmission and distribution systems.

He also recognised AIIB’s contributions to key projects in energy, transport, and urban development.

In continuation, the minister emphasised the government’s priority for adopting a pragmatic approach over the next three to five years, focusing on select solid and outcome-oriented projects.

He underscored the importance of aligning the external economic assistance-funded portfolio with federal government priorities to ensure maximum developmental impact.

Cheema further highlighted the need for establishing an AIIB office in Pakistan to facilitate closer coordination and more effective engagement. He also encouraged enhanced collaboration with the private sector, particularly in the agriculture domain, to unlock growth potential and strengthen value chains, thereby contributing to sustainable economic development.

The federal minister reiterated Pakistan’s request for AIIB’s expeditious cooperation and enhanced support for priority infrastructure initiatives.