UAE gives $1bn to Pakistan under support package

KARACHI: Pakistan has received $1 billion from the United Arab Emirates as the first installment of a $3 billion loan package on Thursday evening, confirmed the State Bank of Pakistan (SBP).

The country will receive another $2 billion in two separate installments.

With the addition of a billion dollar in the exchequer, the country’s reserves have appreciated to $14.257 billion as the State Bank of Pakistan’s reserves now stands at $7.64 billion and commercial banks at $6.62 billion.

Earlier, Pakistan and the UAE signed a support package, as pledged by Abu Dhabi to boost the liquidity and foreign exchange reserves of the cash-starved country.

According to the package, signed in a ceremony scheduled at Abu Dhabi, the UAE will deposit $3 billion in the State Bank of Pakistan to support the country’s financial and monetary policy.

The UAE had announced its intention to inject $3 billion cash into Pakistan via the Abu Dhabi Fund for Development in December last year, a month after Prime Minister Imran Khan undertook his second trip to the country since assuming office.

The two countries earlier in January were said to have finalised the terms and conditions of the support package, which involves $3.2 billion worth of oil supplies on deferred payment in addition to the $3 billion cash deposit.

 

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