The government of Pakistan failed to get the UAE oil facility of around $3.2 billion.
$3.2b UAE oil facility on deferred payments is not received as the government is unable to secure the deal. However, it is a major development that can bring the foreign currency reserves under stress.
Finance Minister Asad Umar revealed that the UAE oil facility agreement won’t materialize. He further added that the government finalized the alternative arrangements to meet the external financing needs of the ongoing fiscal year. In February, UAE also postponed the Joint Ministerial Commission scheduled meeting.
The $3.2 billion oil facility was part of the $6.2 billion that the UAE had announced to give to Pakistan in December to help the country passing through difficult economic times. The UAE has already transferred $2 billion cash into the coffers of the State Bank of Pakistan (SBP) and another $1 billion was expected very soon.
During the visit of UAE crown prince, Pakistani authorities had hoped that the crown prince would announce the $3.2 billion credit oil facility following the same model of Saudi Arabia. Later on, the February deadline was given that was also missed.
