The Finance Minister of Pakistan, Ishaq Dar, announced that the United Arab Emirates has informed the International Monetary Fund (IMF) that they will provide $1 billion in support to Pakistan.
This support will enable Pakistan to unlock a critical $1.1 billion loan tranche from the IMF. The State Bank of Pakistan is currently working on the necessary documentation to receive the deposit from the UAE authorities.
The IMF has also received confirmation from Saudi Arabia on $2 billion in additional deposits. These deposits from Saudi Arabia and the UAE are necessary for an IMF deal that Islamabad needs to avoid defaulting.
Despite the looming risk of default, the IMF Managing Director stated that Pakistan has not yet reached that level, but the country requires a sustainable policy framework to prevent such risks.
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