SBP to receive second tranche of $2bn from Abu Dhabi

The State Bank of Pakistan (SBP) on Saturday signed an agreement with Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of $2 billion.

“The funds are expected to be received ‘today or tomorrow’,” State Bank spokesman Abid Qamar said.

The said fund is part of a $3 billion loan agreement singed between Pakistan and the United Arab Emirates in December last year in an effort to help the former address its balance of payment crisis.

SBP in January received $1 billion of the $3 billion loan promised to the country. The rate of return for the loan is 3pc.

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The agreement was signed by SBP Governor Tariq Bajwa and the Abu Dhabi Development Fund chairperson.

The funds were to be transferred to Pakistan in three instalments. Pakistan’s foreign reserves went up to $14 billion from the previous $13 billion after the first instalment was transferred.

Pakistan is seeking financing from friendly countries to bridge the nation’s current account gap of at least $12 billion for the fiscal year ending June. It already obtained $3 billion from Saudi Arabia.

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