KARACHI: Pakistan has received another $1 billion out of a $3 billion package pledged by the UAE last year to help bring a gaping current account deficit under control, the country’s central bank said, adding that the final tranche of $1 billion would be deposited within days.
On Tuesday, the Abu Dhabi Fund for Development (ADFD) deposited $1 billion with the State Bank of Pakistan (SBP). Another $1 billion was received from the Fund in January. The UAE deposits are aimed at supporting Pakistan’s monetary policy.
“We have received $1 billion and hopefully will get the remaining $1 billion within the next couple of days,” Abid Qamar, the spokesman for the central bank, told Arab News.
The deposits come as Islamabad remains engaged in bailout talks with the International Monetary Fund.
In October, Saudi Arabia said it would loan Pakistan $6 billion, including a $3 billion deposit for its foreign currency reserves and another $3 billion in deferred oil payments. China, Pakistan’s staunchest ally and financial benefactor, has also pledged to help but has not announced the size of the assistance package yet.
In January this year, Mohammed Saif Al Suwaidi, Director General of ADFD, and Tariq Bajwa, Governor of the SBP, signed an agreement with ADFD for a $3 billion (AED11 billion) deposit into the central bank of Pakistan. The decision was taken under the directives of UAE President, Sheikh Khalifa bin Zayed Al Nahyan, and Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan.
Islamabad believes the inflows from the UAE will help improve its foreign exchange reserves, which stood at $8.11 billion on March 01, 2019. Pakistan is also hoping the United Arab Emirates will, like Saudi Arabia, offer further financial support through deferred oil payments.
“Saudi and UAE help has averted the country’s default,” financial expert Muzzamil Aslam said. “The country was able to secure loans at cheaper rates, average 3.2 percent, as compared to commercial markets where the rates are 7-8 percent.”
Pakistan receives second tranche of $1b from UAE — SBP
Pakistan receives second tranche of $1b from UAE — SBP
- Abu Dhabi pledged $3 billion last year to stave off balance of payments crisis
- Last tranche of $1 billion expected within days, central bank spokesman says
Pakistan receives third batch of humanitarian aid from China for flood-hit communities
- Intense rains and floods this year killed more than 1,037 people, displaced millions and damaged crops on vast tracts in Pakistan
- The arrival of the latest consignment comes at a time when the onset of winter season has compounded problems of displaced people
ISLAMABAD: Pakistan has received a third consignment of humanitarian assistance from China for flood-affected communities in the country, Pakistani state media reported on Friday.
Intense rains and floods this year killed more than 1,037 people and damaged crops worth billions of dollars in Pakistan, which ranks among nations most vulnerable to climate change.
The deluges displaced millions of people as they damaged more than 229,000 homes, washed away 2,811 kilometers of roads, 790 bridges and over 22,800 livestock in affected areas.
Pakistan’s National Disaster Management Authority (NDMA), which received the shipment, appreciated timely assistance by the Chinese government for disaster relief efforts in Pakistan.
“The shipment marks the continuation of China’s humanitarian support,” the Radio Pakistan broadcaster reported. “It includes 100 boats, 5,000 tents, and 8,000 blankets.”
China has so far provided Pakistan with 33,000 blankets, 6,000 tents, 100 boats, 1,000 life jackets and 4,000 sleeping bags, according to the report.
The arrival of the latest consignment coincides with the onset of winter season, which has compounded the problems of displaced Pakistanis.
The NDMA reiterated its commitment to mobilize all available resources and ensure the provision of relief items in affected areas strictly in accordance with “ground needs and evolving situation assessments.”
