UAE pledges $1bn in support to Pakistan, confirms finance minister

On Friday, Pakistan’s finance minister announced that the United Arab Emirates has committed to providing $1 billion in support to the country, as confirmed to the International Monetary Fund (IMF).

Commitment is a crucial factor that the fund has highlighted as necessary to progress with a long-awaited bailout package aimed at stabilizing the country’s economy, which has been facing challenges for several months.

Pakistan’s Finance Minister Ishaq Dar announced on Twitter that the State Bank of Pakistan is currently in the process of completing the necessary documentation to retrieve the deposit from UAE authorities.

The IMF’s managing director Kristalina Georgieva said the previous day the fund was also in talks with friendly countries of Pakistan to provide financial assurances so it can complete the programme.

Saudi Arabia last week had also told the IMF it will provide $2 billion in financing to Pakistan.

Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments.

The fund has also said it needs assurances that the balance of payments deficit is fully financed for the fiscal year ending in June.

(Reuters)