PM Imran thanks UAE as Pakistan is expected to receive $3 billion from the United Arab Emirates (UAE) in one go, sources said Sunday.
The sources further explained that the interest rate will be 2.18 percent on the amount the UAE will deposit in the State Bank of Pakistan (SBP).
Due to the courtesy of the Emirates, the monetary package is expected to comprise cheaper loans and budget support as part of the economic aid, sources added.
Additionally, the UAE is also expected to sell on credit $3 billion worth of oil for three years. The oil valued at $250 million per month.
UAE earlier on Friday had announced to deposit $3 billion in the SBP to support Pakistan’s financial and monetary policy.
UAE Embassy in Islamabad expressed that the aid will do so “to support the financial and monetary policy of the Islamic Republic of Pakistan and to enhance liquidity and monetary reserves of foreign currencies at the State Bank of Pakistan”.
Hamad Obaid Al-Zaabi, the UAE’s Ambassador to Pakistan, had commented that the deposit from the Abu Dhabi Fund for Development aims to strengthen Pakistan’s fiscal and monetary policy in addition to the financial stability.
The ambassador emphasized that the UAE’s support to Pakistan is based on the historical relations between the two peoples, and the social and cultural ties that unite the two countries, while the bilateral relations manifests the prospects of broad horizons of cooperation in various fields.
The Abu Dhabi Fund for Development has financed eight development projects in Pakistan worth a total of AED 1.5 billion, including AED 931 million in grants. The sum covered projects in sectors such as energy, health, education, and roads.
PM Imran thanks UAE for supporting Pakistan and said it reflects commitment and friendship between the two countries. PM Imran Khan said, “I want to thank the UAE govt for supporting Pakistan so generously in our testing times”.
I want to thank the UAE govt for supporting Pakistan so generously in our testing times. This reflects our commitment and friendship that has remained steadfast over the years.
— Imran Khan (@ImranKhanPTI) December 21, 2018
We thank Crown Prince H.H @MohamedBinZayed for his generous financial support of US$ 3 Billion. This is a manifestation of the close fraternal ties between Pakistan & UAE which have always stood the test of time.
— Shah Mahmood Qureshi (@SMQureshiPTI) December 21, 2018
“This is a manifestation of the close fraternal ties between Pakistan & UAE which have always stood the test of time,” FM Qureshi added.
Finance Minister Asad Umar on Thursday said the country’s foreign exchange reserves have increased by 12.5 percent.