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October 23, 2019
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Pakistan receives $1bn from UAE as balance of payment support

KARACHI: Pakistan received the first installment of the $3 billion financial assistance package pledged by UAE to shore up the country’s foreign exchange reserves.

Following the signing of an agreement with the Abu Dhabi Fund for Development in Abu Dhabi on January 22, the State Bank of Pakistan received $1 billion on Thursday.

As per the agreement, the ADFD has agreed to provide $3bn to Pakistan in three instalments to help bridge the country’s current account deficit.

An SBP spokesman confirmed the central bank received $1bn from UAE.

The government signed a similar deal of $3bn with Saudi Arabia earlier and the kingdom has so far placed $2bn in the SBP account whereas the last tranche of $1bn is expected in February. Saudi Arabia also agreed to supply $3bn oil on deferred payments.

Pakistan has also sought Doha to supply LNG on deferred payment. Pakistan’s annual LNG imports during the last fiscal year clocked in at $2.035bn.

On the other hand, inward remittances during first half of the ongoing fiscal year recorded 12pc growth and are likely to increase further once Qatar agrees to provide employment opportunities to 100,000 Pakistani labourers.