Pakistan and the United Arab Emirates (UAE) on Tuesday signed a $3 billion bailout package, as part of Abu Dhabi’s support to boost the cash-strapped country’s dwindling dollar reserves.
The UAE in December last year had announced plans to provide $3 billion in financial assistance to Pakistan after Saudi Arabia made a similar commitment to help Islamabad successfully overcome an international payment crisis and avoid a stringent International Monetary Fund (IMF) deal.
Tuesday’s agreement was 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.
He said the agreement will help Pakistan achieve financial stability and overcome economic challenges.
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.
Pakistan has a 15-year contract with Qatar for supply of LNG.
The Saudi Arabian and the UAE governments have played a major role in helping Pakistan meet a shortfall of around $12 billion in balance of payments in 2018-19 fiscal year, government officials said.