ISLAMABAD: Pakistani prime minister Imran Khan on Saturday thanked the United Arab Emirates for it's support in "testing times," a day after Abu Dhabi announced plans to loan Pakistan $3 billion to help shore up its economy.
Support from the UAE was reportedly promised during Khan’s second visit to Abu Dhabi in November where he held meetings with Sheikh Muhammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai.
Khan thanked the UAE government for supporting Pakistan “so generously in our testing times," adding that the financial support “reflects our commitment and friendship that has remained steadfast over the years."
UAE's state media reported on Friday that the Abu Dhabi Fund for Development would deposit $3 billion in Pakistan's central bank in the “coming days to enhance liquidity and monetary reserves of foreign currency."
Analysts said that the cash would help Pakistan overcome its balance of payments’ crisis and stabilise the rupee which plunged 34 percent from 105 against the US dollar in December 2017 to 139 on December 21 this year.
Khan also visited Saudi Arabia in October this year where he secured $6 billion as financial support to bridge a $12 billion current account deficit. Pakistan has so far received $2 billion from Saudi Arabia in two tranches out of a total $3 billion in direct foreign currency support. The remaining $1 billion is expected to be transferred to the central bank next month.
Pakistan is also in bailout negotiations with the International Monetary Fund.
Senior economist Dr. Athar Ahmad said Pakistan's decades-old bilateral and cordial relationship with the UAE and Saudi Arabia “was now turning into a strong economic and trade relationship which will not only help us but also contribute to the prosperity of the entire region."
“The UAE’s $3 billion financial aid will bolster Pakistan’s position to negotiate a bailout package from the International Monetary Fund,” he told Arab News.
