Fri. Mar 29th, 2024

The United Arab Emirates (UAE) and Pakistan has on Tuesday, signed a USD $3 billion bailout package, as a part of efforts by Abu Dhabi to support and boost cash-strapped Pakistan’s dwindling dollar reserves, and avoid International Monetary Fund deal.

During last year’s December, the UAE had declared that it would provide USD $3 billion financial assistance to Islamabad after Saudi Arabia made the same commitment to helping Pakistan successfully overcome the international debt financial crisis and avoid a stringent IMF (International Monetary Fund) deal.

According to The Asian Tribune news reports, the Tuesday’s agreement was marked between Abu Dhabi Fund for Development (ADFD) director general Mohammad Saif Al Suwaidi and State Bank of Pakistan (SBP) chief Tariq Bajwa.

In a tweet, the foreign office spokesperson Mohammad Faisal wrote: “UAE has formalized $3 billion deposit in the State Bank of Pakistan. DG ADFD & the Governor SBP inked the agreement at #ADFD Headquarters in Abu Dhabi.”

Faisal said the agreement would now help the Pakistani government to achieve financial stability and overcome the country’s economic challenges.

The UAE has committed Islamabad with the financial assistance during Pakistan’s Prime Minister Imran Khan visited Qatar in December to seek investments and provision of LNG on deferred payments.

The UAE and Saudi Arabian government have played major roles supporting Pakistan to meet its USD $12 billion shortfalls of payments in the fiscal year of 2018-2019, the government officials said.

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