Fri. Mar 29th, 2024

Abu Dhabi crown prince Sheikh Mohammed bin Zayed bin Sultan Al-Nahyan met with the Pakistani Prime Minister Imran Khan on Sunday, as debt-ridden country Pakistan seeks economic supports to strengthen its foreign exchange reserves and also fiscal policies.

Pakistan, suffering financial crisis, reached out to several countries for economic assistance, including China, Saudi Arabia and the United Arab Emirates (UAE) since Khan took the office in August, 2018.

According to news reports, the crown prince was on a day-long visit to Pakistan, after 12 years, was received by Pakistan’s PM at Nur Khan airbase in Rawalpindi. Crown prince received guard of honors. After both country’s leaders meeting, top-level delegations of both countries will hold talks.

Pakistan’s foreign ministry office said the meeting aimed at improving fresh momentum in bilateral ties, which was recently affected at a leadership level.

Khan has visited UAE twice last year seeking economic assistance in order to push back the foreign exchange crisis of the debt-ridden country.

The report said the UAE and Pakistan have, last week, finalized the terms and conditions of the assistance package worth USD 6.2 billion for Islamabad, which the crown prince is expected to announce it during his visit, and that the assistance package is part of help to Pakistan to balance its payment crisis.

The report cited cabinet minister saying the package is as same as those which was given by Saudi Arabia and also holds the same terms and conditions.

The reports said Pakistan would be able to save total USD 7.9 billion over gas and oil imports from the UAE, with this assistance package, accounted for 60 percent of its annual oil import bill, which amounts roughly up to USD 12-13 billion.

It said, the package included around USD 3.4 billion each of the oil supplies on postponed payments from Saudi Arabia and UAE, and around USD 1.5 billion trade finance from ITFC (International Islamic Trade Finance Corporation).

According to a cabinet minister, the total financial assistance from Saudi Arabia and the UAE with including ITFC’s finance, it would be a total of around USD 13.9-14 billion.

Oil refinery talks, worth USD 5-6 billion, was set by Parco at Khalifa Point and the petro-chemical complex was set by Saudi Arabia at Gwadar Oil City.

China, Pakistan’s close ally, has promised to provide assistance to Islamabad to resolve its financial woes. Though, Beijing has not yet disclosed the details of its financial aid to Pakistan.

Pakistan has sought negotiations from International Monetary Fund (IMF) worth USD 8 billion bailout package to balance its payment that threatens to worry Pakistan’s economy.

However, the US President Donald Trump’s administration is trying hard to not let IMF loan to help Pakistan to repay its Chinese debt.

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