Pakistani Prime Minister Imran Khan has thanked the United Arab Emirates for supporting Pakistan after news emerged that it provided the country with $3 billion.
“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,” said the Khan on Twitter.
According to the Emirates News Agency, the UAE deposited $3 billion in the State Bank of Pakistan to support its financial and monetary policy. It said the country’s support for Pakistan’s fiscal policy is based on the historical ties between the two people and the two friendly countries and the desire to further develop the bilateral cooperation in all fields.
This could place the country in a better position to negotiate, or even not to take up, a $15 billion standby-agreement with the International Monetary Fund early next year.
The Abu Dhabi Fund for Development has financed eight development projects in Pakistan covering projects in sectors such as energy, health.
Pakistan’s Foreign Minister Shah Mahmood Qureshi also thanked the UAE leadership and lauded Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, who is expected to visit Pakistan in January 2019 to strengthen the bilateral relationship between the two countries.
“We thank His Highness Sheikh Mohamed bin Zayed for his generous financial support of $3 billion. This is a manifestation of the close fraternal ties between Pakistan and the UAE which have always stood the test of time,” Mahmood tweeted.
In late October, Saudi Arabia announced that it would offer $3 billion to Pakistan in addition to another $3 billion to buying oil on deferred payments. It has already transferred $2 billion into the SBP account and the remaining $1 billion is likely to be deposited next month.
Imran Khan also secured a package during his first official visit to China early November, but financial details have not disclosed.
Pakistan is expecting $12 billion inflows from its close allies such as UAE, Saudi Arabia and China during financial year 2018-19.
The country’s gross financing requirements are estimated at $21.45 billion by June 30, 2019.