UAE to deposit $3 billion in State Bank of Pakistan
The United Arab Emirates has announced its intention to deposit US$3 billion in the State Bank of Pakistan to support the country’s financial and monetary policy.

The Abu Dhabi Fund for Development, in a statement today, said it will deposit the amount in the coming days to enhance the country's liquidity and monetary reserves of foreign currency.

UAE’s support for Pakistan's fiscal policy is based on the historical ties between the two countries and the desire to further develop bilateral cooperation in all fields, the statement said.

The Abu Dhabi Fund for Development has financed eight development projects in Pakistan worth a total of AED1.5 billion, including AED931 million in grants. The funds covered projects in sectors such as energy, health, education and roads.

Prime Minister Imran Khan thanked the UAE government for supporting Pakistan and said it reflects commitment and friendship between the two countries.

"I want to thank the UAE govt for supporting Pakistan so generously in our testing times. This reflects our commitment and friendship that has remained steadfast over the years," the premier wrote in a tweet.

Foreign Minister Shah Mehmood Qureshi also hailed the development and thanked the Crown Prince of Abu Dhabi for the generous financial support.

"We thank Crown Prince H.H @MohamedBinZayed for his generous financial support of US$ 3 Billion. This is a manifestation of the close fraternal ties between Pakistan & UAE which have always stood the test of time," Qureshi tweeted.

On December 14, Pakistan received the second tranche of $1 billion from Saudi Arabia after which the country's foreign exchange reserves stood at $8.26 billion.

The deposit was confirmed by the central bank, which said it will receive the third installment in mid-January. The first $1 billion from Saudi Arabia were received in November.

Experts say the deposits will ease pressure on Pakistan’s foreign currency reserves and the rupee, which has depreciated by 36 percent against the US dollar over the past 12 months.

The current Pakistan Tehreek-e-Insaf government has also approached China and the International Monetary Fund to seek packages to support the economy.

Finance Minister Asad Umar on Thursday said the country's foreign exchange reserves have increased by 12.5 percent.

 



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