"While liquidity continues to tighten, we need to help those countries that are insolvent. The Asian Infrastructure Investment Bank (AIIB) stands ready to support the world's most vulnerable countries, and we have increased our multilateral assistance to countries including Pakistan. In addition, we are considering post-earthquake support for Turkey," said AIIB President Jin Liqun, according to a report published by China Economic Net (CEN) on Tuesday. During the China Development Forum 2023, Jin said that the international community is confronted with multiple risks and challenges. Prolonged high inflation, tight Labour markets and spillover effects from high commodity prices are likely to keep central banks tightening monetary policy all over the world. 

"At the same time, supportive policies during the pandemic have led to higher government debt, with bond yields rising and bond prices falling globally," said Jin. Risks to financial stability have increased. At a time of higher debt levels, the situation may be even more troubling for some developing countries and low-income countries with high levels of debt, said Jin, adding that risks also exist in the banking sector in some advanced economies. For those developing countries, higher uncertainty means a change in investors' risk tolerance. Jin believes that amid such pessimism, more investment is needed, especially in infrastructure. The development bank will continue to firmly support developing economies in building the conditions for long-term economic growth, Jin said. 

At present, we need to reform the governance system so that developing countries can get more involved and reach more consensus under the multilateral framework, Jin added. Touching on the Chinese economy, Jin and some other participants expressed their optimism, saying that its 5% GDP growth target will be achieved in a quality manner and China will a role of stabilizer for the world economy in the face of downward pressures and uncertainties. Moreover, the huge potential and sound development of the Chinese economy will provide broad cooperation space and development opportunities for domestic and foreign investors, Jin said. 

Credit: Independent News Pakistan-INP