UAE formalises $3b deposit into SBP to support Pakistan’s economic growth

Published: January 22, 2019
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Pakistan, UAE signed a $3b bailout package during a ceremony in Abu Dhabi. PHOTO COURTESY: EMIRATES NEWS AGENCY

Pakistan, UAE signed a $3b bailout package during a ceremony in Abu Dhabi. PHOTO COURTESY: EMIRATES NEWS AGENCY

Pakistan and United Arab Emirates (UAE) signed a $3 billion bailout package on Tuesday, as part of Abu Dhabi’s support for Islamabad’s falling foreign exchange reserve and resolving balance of payment crisis.

According to Emirates News Agency, State Bank of Pakistan (SBP) Governor Tariq Bajwa and Abu Dhabi Fund for Development (ADFD) DG Mohammed Saif Al Suwaidi and other officials were present during the signing of the agreement.

Speaking on the occasion Suwaidi said, “The directive to deposit $3 billion with the State Bank of Pakistan 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.”

UAE comes to Pakistan’s aid with $3b package

While praising the UAE leadership for their continued support to the people of Pakistan, Bajwa said that the support from ADFD over the years has stimulated economic growth and contributed to sustainable development.

To date, ADFD has provided AED1.5 billion (approximately Rs57 billion) to fund sustainable development projects in Pakistan spanning diverse sectors, including transport, water and agriculture, healthcare, and education.

Saudi Arabia releases second $1b loan tranche

In December 21 last year, the UAE had announced it would deposit $3 billion into Pakistan’s foreign currency account to help it successfully overcome international payment crisis and to avoid a stringent International Monetary Fund (IMF) deal.

Abid Qamar, the SBP spokesperson, said they would soon share details whether the announced funds will be deposited in one-go or in tranches like Saudi Arabia has been doing and that when the deposits would be transferred to Pakistan.

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Reader Comments (1)

  • Truth
    Jan 22, 2019 - 10:12PM

    How can country grown when some other country put some money in it’s banks. I can’t understand. Probably Fawad Chaudhary can explain us. Recommend

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