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

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.”

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.

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.

Source: The Express Tribune