United Arab Emirates (UAE) has announced a $3 billion package to Pakistan. UAE will deposit $3 billion in State Bank of Pakistan (SBP). The goal is to help Pakistan in improving its foreign currency reserves.
Further on the $3 billion oil facility on deferred payment will be provided. It will be finalized by next month. Further on it has been made clear by Saudi Arabia and the UAE that this support by these countries is not a substitute to the IMF program.
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.”
Just a month has passed after the PM Khan’s visit to the UAE and now the $3 billion package is announced by UAE. The Abu Dhabi Fund for Development will deposit the amount in upcoming days to SBP.
8 development projects in Pakistan have been financed by the Abu Dhabi Fund for Development that has a total value of AED1.5 billion which includes AED931 million in grants.
Dr Khaqan Najeeb Finance Ministry Spokesman said that through $3 billion deposits, Pakistan will achieve stability in its exchange rate.
The draft of Memorandum of Economic and Financial Policies (MEFP) has been submitted by Pakistan to IMF and it is projected that through external financing Pakistan foreign currency reserves will remain at over $14 billion.