ISLAMABAD: Pakistan has received its first tranche of $1 billion from the United Arab Emirates (UAE) of a $3 billion financial assistance package on Thursday.
Muck akin to the financial arrangement reached with Saudi Arabia, Pakistan will receive the remaining $2 billion in two separate instalments from the UAE.
On Tuesday, Pakistan and the United Arab Emirates signed a US$3 billion financial 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 amount will be paid to Pakistan in three instalments.
The UAE had announced its intention to inject $3 billion cash into Pakistan via the Abu Dhabi Fund for Development (ADFD) in December last year, a month after Prime Minister Imran Khan undertook his second trip to the country since assuming office.
According to details, the decision to formalize the deposit was made under the directives of the President His Highness Sheikh Khalifa bin Zayed Al Nahyan, and His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Mohammed Saif Al Suwaidi, Director General of ADFD, and Tariq Bajwa, Governor of the State Bank of Pakistan, signed the agreement at the ADFD headquarters in Abu Dhabi. Moazzam Ahmad Khan, Ambassador of Pakistan to the UAE, Khalifa Al Qubaisi, Deputy Director General of ADFD, and other senior representatives of the two parties attended the signing ceremony.
Speaking on the occasion, Mohammed Saif Al Suwaidi said, “The directive to deposit $3 billion with the SBP aligns with the UAE leadership’s keenness to bolster Pakistan’s economy, help its government achieve financial stability and overcome economic challenges, and drive comprehensive development in the country.
ADFD and the Pakistani government have enjoyed strong and long-standing ties dating back to 1981. The fund’s efforts have significantly contributed to improving socio-economic conditions in the country, boosting strategic growth and achieving the development priorities of the Pakistani government.”
For his part, Tariq Bajwa praised the UAE leadership for their continued support to the people of Pakistan. He also noted the support from ADFD over the years has stimulated economic growth and contributed to sustainable development.