AIIB targets approval for Pakistan power project by year-end, discusses ML-1 financing

According to Profit by Pakistan Today, the Asian Infrastructure Investment Bank (AIIB) hopes to clear a power transmission scheme in Pakistan before 2026 ends. Finance Minister Senator Muhammad Aurangzeb discussed the agenda with AIIB President Zou Jiayi during the World Bank Group and IMF annual meetings in Bangkok.

Aurangzeb named power transmission and railway modernisation as top priorities. The talks touched on the Karachi to Rohri stretch of the ML-1 line and on possible co-financing with the Asian Development Bank, or separate funding for other segments. He pressed for a multi-year lending framework, prompt project delivery and a bigger role for private players through public-private partnerships.

Aurangzeb thanked AIIB for its Panda bond guarantee and laid out plans to widen funding sources, stretch out debt maturities and cut rollover risk. The bank indicated it would back future capital market issues and examine technical collaboration around Eurobond tokenisation. In a separate Bangkok meeting, he discussed financing terms and guarantee cover with MIGA Managing Director Tsutomu Yamamoto, arguing the terms should reflect Pakistan's better sovereign ratings and market access. He welcomed MIGA's revised pricing and said Pakistan wants to move ahead with board review and paperwork. The UK Supreme Court's hydropower matter also came up, with next steps hinging on its judgment.