UAE offers aid to Pakistan of US $3 billion to be deposited in the State Bank of Pakistan.
UAE offers aid to Pakistan to support the country’s financial and monetary policy.
The Abu Dhabi Fund for Development has said that it has intention of depositing the amount in upcoming days to enhance the country’s liquidity and monetary reserves of foreign currency.
UAE offers aid to Pakistan to support country’s fiscal policy is based on the historical ties between the two countries and the desire to further develop bilateral cooperation in all fields, the statement said.
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 funds covered projects in sectors such as energy, health, education and roads.
Prime Minister Imran Khan thanked the UAE government for supporting Pakistan and said it reflects commitment and friendship between the two countries.
In his tweet PM Imran Khan said,
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
On December 14, Pakistan received the second loan of $1 billion from Saudi Arabia after which the country’s foreign exchange reserves stood at $8.26 billion.
The deposit was confirmed by the State Bank of Pakistan, which said it will receive the third installment in mid-January.
The first $1 billion from Saudi Arabia were received in November.
Experts say the deposits will ease pressure on Pakistan’s foreign currency reserves and the rupee, which has depreciated by 36 percent against the US dollar over the past 12 months.
The current Pakistan Tehreek-e-Insaf government has also approached China and the International Monetary Fund to seek packages to support the economy.
Finance Minister Asad Umar on Thursday said the country’s foreign exchange reserves have increased by 12.5 percent.