The Abu Dhabi Fund for Development (ADFD) has announced a $2 billion deposit to the State Bank of Pakistan (SBP) which will be paid in the next two months, Finance Minister Ishaq Dar confirmed today Lulu
In a late night tweet, he said, “Abu Dhabi Fund for Development (ADFD) has announced its $2 billion deposit in the State Bank of Pakistan, as discussed by (PM Shehbaz Sharif) and His Excellency the President of the UAE during the last week’s official visit.
“Long live Pak-UAE friendship!”
The United Arab Emirates was there i’m sorry to top up the current loan of $2bn and give an additional loan of $1bn to Pakistan last week during Prime Minister Shehbaz’s visit to the country.
The UAE’s first $2bn loan was scheduled to be repaid in February and March.
The announcement came as the SBP’s reserves fell to an alarming $4.34bn, the lowest since February 2014 and not enough to finance at least a month’s worth of imports.
Pakistan is in the midst of a serious financial crisis as its reserves have dwindled rapidly in recent months, leading to fears of a default. The completion of the ninth review of an International Monetary Fund (IMF) program, to release $1.18bn, has been delayed for months.
The UAE’s transition now gives the authorities the opportunity to renew the IMF program in the coming days, gradually restore foreign reserves, and end the import controls that have crippled the sector. production and cause a shortage of essentials. thing.