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Islamic Development Bank Prepares Kyrgyzstan Partnership Study for Socioeconomic Advancement

by Swati Gupta

September 20, 2023 10

Kyrgyzstan is on the cusp of significant economic and social infrastructure developments as the Islamic Development Bank (IsDB) undertakes the formulation of a Member Country Partnership Study (MCPS) tailored to the needs of the Central Asian nation.

The MCPS, a strategic initiative by IsDB, is poised to pave the way for the design and implementation of concrete programs and projects aimed at enhancing Kyrgyzstan’s socioeconomic landscape. This collaborative effort aligns closely with IsDB’s fresh strategic direction, as reported by the Saudi Press Agency.

The pivotal announcement came during a high-level meeting between IsDB President Mohammad Al-Jasser and the President of Kyrgyzstan, Sadyr Japarov. The meeting took place on the sidelines of the 78th session of the United Nations General Assembly held in New York.

Kyrgyzstan has enjoyed a longstanding and productive relationship with the Shariah-compliant Islamic Development Bank. The bank, dedicated to accelerating economic development and fostering cooperation among its member countries, has been a staunch partner in Kyrgyzstan’s journey towards progress.

In a statement, IsDB President Al-Jasser emphasized the potential for significant growth in cooperation between the organization and Kyrgyzstan. He highlighted the outcomes of the recent Arab Cooperation Group roundtable meeting, which identified a robust pipeline of priority projects amounting to a total of $1.9 billion. These projects are poised to play a transformative role in Kyrgyzstan’s development.

Al-Jasser also commended Kyrgyzstan for its unwavering support for the institution, noting the country’s exceptional participation in international meetings, including the recent GCC-Central Asia Summit in Jeddah. In recognition of Kyrgyzstan’s commitment, the IsDB Group has been extending substantial financial support to the nation.

Furthermore, IsDB’s President, along with Ajay Banga, President of the World Bank, engaged in a strategic partnership meeting aimed at strengthening the collaboration between their respective entities. The meeting explored new avenues for implementing development projects in member countries and supporting vulnerable communities on a global scale.

Al-Jasser explained that IsDB’s current strategic objectives revolve around economic recovery, poverty alleviation, resilience building, and promoting green economic growth. He expressed concerns about the adverse effects of successive external shocks on the global economy, underscoring the ongoing geopolitical and trade tensions that contribute to volatility in global food and energy markets.

According to IsDB, President Al-Jasser proposed a robust partnership agreement between the two institutions. This agreement would include a co-financing target and a mechanism to monitor progress, all encapsulated within the framework of a new IsDB-World Bank memorandum of understanding. Such a pact would inject fresh momentum into the partnership, enabling them to jointly address critical issues, including climate change.

While the imperative for climate action is now widely acknowledged, Al-Jasser stressed that there has been limited progress in climate finance, particularly for low-income countries striving to manage the impacts of transitioning to a low-carbon economy. He emphasized that multilateral development banks would require expanded concessional financing pools to ensure a fair and equitable transition to a low-carbon future.

IsDB’s commitment to fostering cooperation, spurring development, and addressing pressing global challenges underscores its dedication to supporting its member countries, including Kyrgyzstan, in their pursuit of socioeconomic progress.