Pakistan, UAE signs $3 billion deal to lift country's economy
New Delhi : Pakistan and the United Arab Emirates (UAE) on 23 January this year, has signed a $3 billion bailout package, as part of Abu Dhabi's support to boost the cash-strapped country's dwindling dollar reserves.
Last year in December, UAE has announced to provide $3 billion financial help to Pakistan after Saudi Arabia made such a commitment to help Islamabad successfully overcome international payment crisis and to avoid a stringent International Monetary Fund (IMF) deal.
The agreement, this year has been signed between State Bank of Pakistan (SBP) chief Tariq Bajwa and Abu Dhabi Fund for Development (ADFD) Director General Mohammed Saif Al Suwaidi.
"UAE has formalized US $3bn deposit in the State Bank of Pakistan. DG ADFD & the Governor SBP inked the agreement at #ADFD Headquarters in Abu Dhabi," Foreign Office spokesman Mohammad Faisal tweeted.
It is believed that with the help of this deal with UAE, Pakistan will attain financial stability and overcome economic challenges and noted ADFD's support over the years to stimulate Pakistan's economic growth and sustainable development.
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."
He added, "ADFD and the Government of Pakistan have enjoyed strong and long-standing ties dating back to 1981. The Fund's efforts have significantly contributed to improving socio-economic conditions in the country, boosting strategic growth and achieving the development priorities of the Pakistani government.
Reports claim that ADFD has provided AED1.5 billion to fund sustainable development projects in Pakistan spanning diverse sectors, including transport, water and agriculture, healthcare, and education, according to a press release.
Sources confirmed that the UAE had committed the financial assistance during Prime Minister Imran Khan's visit to Qatar last month to seek investment and provision of LNG on deferred payments.