Islamabad: 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, 2018 had announced to provide $3 billion financial assistance to Pakistan after Saudi Arabia made a similar commitment to help Islamabad successfully overcome international payment crisis and to 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.
Foreign Office spokesman Mohammad Faisal tweeted:
#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. It will help Pakistan achieve financial stability and overcome economic challenges #pakuaebrotherhood pic.twitter.com/sH748xDgwK
— Dr Mohammad Faisal (@ForeignOfficePk) January 22, 2019
The UAE had committed the financial assistance during Prime Minister Imran Khan's visit to Qatar in December, 2018 to seek investment and provision of liquefied natural gas (LNG) on deferred payments.
Pakistan has a 15-year contract with Qatar for supply of LNG.
The Saudi and the UAE governments have played a major role in helping Pakistan to meet around USD 12 billion shortfall in balance of payments in 2018-19 fiscal year, government officials said.
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Updated Date: Jan 23, 2019 08:50:00 IST