Pakistan gets lifeline rollover of $2bn loan from UAE

admin 19 January, 2023
Updated 2023/01/19 at 9:11 AM
3 Min Read
Finance Minister Ishaq Dar photographed on January 4 2023 PID

The UAE offered the rollover at a time when Pakistan’s foreign reserves fell to just three weeks’ worth of imports

Finance Minister Ishaq Dar stated the United Arab Emirates (UAE) rolled over its $2 billion loan to Pakistan – a move that the coins-deprived united states needs direly to make a few respiration space in its monetary environs.

Abu Dhabi Fund for Development (ADFD) has rolled over their deposit of $2 billion with State Bank of Pakistan, as mentioned via PM Shehbaz Sharif with His Highness the President of UAE Mohammed bin Zayed Al Nahyan at some stage in closing week’s reliable go to to the UAE,” the minister stated in a tweet on Wednesday.

The UAE, on January 12, agreed to lend $1 billion to Pakistan and roll over an existing $2 billion loan, the us of a’s records minister had stated, as the us of a’s crucial financial institution overseas reserves fell to simply three weeks’ well worth of imports.

The UAE’s economic help offered a few respite to the country this is nonetheless reeling from devastating national floods that have brought about greater than $30 billion of harm.

The loan bulletins came as Pakistan’s top minister, Shehbaz Sharif, kicked off a -day visit to the United Arab Emirates. “This aid will help us tide over financial difficulties,” Sharif stated in a announcement.

He met UAE President Sheikh Mohammed bin Zayed al-Nahyan and turned into due to speak commercial enterprise and monetary possibilities with other officers and enterprise leaders, Information Minister Marriyum Aurangzeb stated.

The International Monetary Fund’s ninth assessment to clear the discharge of a similarly $1.1 billion tranche of finances to Pakistan has been pending due to the fact that September, so external financing is essential for the united states of america’s broken economic system.

Foreign trade reserves held by way of SBP fell to a vital degree of $four.Three billion, the bank stated, slightly sufficient for 3 weeks of imports.

Net forex reserves held with the aid of commercial banks stood at $5.8 billion, and general liquid reserves at $10.1 billion, the bank brought.

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