UAE rolls over $2 billion deposit with Pakistan’s central bank— finance minister

Pakistani Finance Minister Ishaq Dar (C) gestures during a press conference in Islamabad on July 11, 2017. (Photo courtesy: AFP/FILE)
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Updated 19 January 2023
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UAE rolls over $2 billion deposit with Pakistan’s central bank— finance minister

  • Development follows closely behind PM Shehbaz Sharif’s recent meeting with UAE president
  • UAE also agreed to a $1 billion additional loan to Pakistan during Sharif’s recent visit 

ISLAMABAD: The Abu Dhabi Fund for Development (ADFD) has rolled over its existing deposits of $2 billion in Pakistan’s central bank, Finance Minister Ishaq Dar announced on Wednesday, a move bound to bring some relief to the cash-strapped country. 

The development follows closely behind Prime Minister Shehbaz Sharif’s two-day visit to the Gulf country last week. Sharif met UAE President Sheikh Mohammed bin Zayed Al Nahyan and other senior leaders during his official trip. During the meeting, the UAE president agreed to lend Pakistan an additional $1 billion and roll over its existing loan of $2 billion, Pakistan’s information minister had said. 

Pakistan, still reeling from last year’s devastating floods that caused damages of more than $30 billion, is actively seeking external financing from allies and multilateral organizations. Talks between Pakistan and the International Monetary Fund (IMF) for a tranche of $1.1 billion loan have remained suspended since September 2021. 

On Wednesday, the governor of Pakistan’s central bank said the country expected to receive dollar inflows from “next week,” without specifying where it would get them from or the exact amount. 

“Abu Dhabi Fund for Development (ADFD) has rolled over their deposit of $2 billion with State Bank of Pakistan,” Dar wrote on Twitter.

https://twitter.com/MIshaqDar50/status/1615754705900298241

The South Asian country, already grappling with surging inflation and rising energy prices, is also worried about its dwindling foreign exchange reserves. According to official data, Pakistan’s central bank has total liquid reserves of $10.18 billion reserves and $4.3 billion in net reserves, enough for only a month’s imports. 

Earlier this month, Crown Prince Mohammed bin Salman issued directives to Saudi authorities to study increasing the Kingdom’s investments in Pakistan to $10 billion. He also directed the Saudi Fund for Development to study increasing the Saudi deposit to Pakistan’s central bank to reach $5 billion.

Pakistan has maintained close ties with Saudi Arabia and the UAE, where millions of Pakistani expatriates live and work in the kingdom. Both countries serve as an important source of remittances for the South Asian country. Abu Dhabi and Riyadh have come to Pakistan’s financial aid whenever Islamabad finds itself in desperate need of external financing. 

 


Pakistan, Qatar resolve to boost strategic, economic cooperation at Doha talks

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Pakistan, Qatar resolve to boost strategic, economic cooperation at Doha talks

  • Both countries urge dialogue on Afghanistan amid renewed border tensions between Islamabad and Kabul
  • Discussions focus on bilateral trade and investment, energy, defense, manpower and labor and culture

ISLAMABAD: Pakistan and Qatar on Tuesday agreed to deepen their strategic and economic cooperation during high-level talks between Prime Minister Shehbaz Sharif and his Qatari counterpart Sheikh Mohammed bin Abdulrahman bin Jassim Al Thani, Sharif’s office said.

Sharif visited Qatar along with a high-level delegation on the invitation of Qatari emir Sheikh Tamim bin Hamad Al Thani. The Pakistan premier also held meetings with Qatar’s trade and defense minister to discuss cooperation in various domains.

The visit came at a time when Pakistan is seeking closer economic engagement with Gulf partners amid its broader push to stabilize the economy and attract investment, while maintaining security and defense cooperation with key regional states.

During their meeting in Doha, PM Sharif and Qatar’s Sheikh Mohammed discussed bilateral relations and exchanged views on regional and international developments, according to the Pakistan prime minister’s office.

“They reaffirmed the strong brotherly relations between Pakistan and Qatar and expressed satisfaction at the growing momentum in political, economic and institutional ties,” Sharif’s office said.

“Discussions focused on enhancing cooperation in the fields of trade and investment, energy, defense, manpower and labor and culture, with both sides stressing the importance of their task force to accelerate cooperation in all these areas.”

Pakistan and Qatar maintain strong trade and investment ties. In 2022, the office of Qatar’s emir said the Qatar Investment Authority planned to invest $3 billion in Pakistan, targeting sectors including transport, aviation, education, health, media, technology and labor.

Nearly 300,000 Pakistanis live and work in Qatar, according to Pakistan’s foreign office, with many employed in health, education, engineering and public services, as well as construction and transport. The two countries engage through forums such as the Bilateral Political Consultations and the Joint Ministerial Commission.

Sharif and his Qatari counterpart also discussed regional issues, including developments in Gaza and broader Gulf security. PM Sharif appreciated Qatar’s constructive diplomatic efforts to promote dialogue and de-escalate tensions in the region, according to Sharif’s office.

The meeting reaffirmed the shared commitment to further strengthen the strategic partnership between Pakistan and Qatar and to remain in touch on current bilateral, regional and international issues.

DIALOGUE WITH AFGHANISTAN

Earlier, Sharif and Qatar’s Deputy PM Sheikh Saoud Al-Thani discussed the situation in Afghanistan and called for dialogue to support regional stability.

The meeting took place amid renewed tensions after Islamabad carried out airstrikes last week on what it described as Tehreek-e-Taliban Pakistan (TTP) targets inside Afghanistan. Kabul said the strikes killed civilians and vowed to respond to what it called a violation of its sovereignty.

“Regional developments were also discussed, in particular the situation in Iran and Afghanistan,” Sharif’s office said in a statement. “Both sides emphasized the importance of dialogue, de-escalation and collective efforts to promote peace and stability in the region.”

This was the second time in less than six months that Pakistan conducted airstrikes in Afghanistan. The last strikes triggered heavy, weeklong clashes between the neighbors along their border before Qatar and Turkiye mediated a ceasefire between them in Oct. last year.

Separately, Sharif held meetings with Qatar’s State Minister for Trade Dr. Ahmed bin Mohammed Al-Sayed and a delegation of the Qatar Businessmen Association (QBA), highlighting Pakistan’s investment-friendly reforms.

He invited QBA members to explore opportunities in infrastructure, logistics, energy, agriculture, technology and export-oriented manufacturing, his office said.