The UAE's aid package will help resolve Pakistan's balance of payment crisis.
The UAE on Friday announced a Dh11 billion ($3 billion) financial bailout package to Pakistan that will help resolve Islamabad's balance of payment crisis.
In a statement, the Abu Dhabi Fund for Development (ADFD) said it will deposit Dh11 billion to the State Bank of Pakistan (SBP), the central bank, in coming days to enhance liquidity and monetary reserves of foreign currency at the apex bank.
It is second major breakthrough after Saudi Arabia announced a financial package worth $6 billion last month following the successful visit of Pakistan's Prime MinisterImran Khan, who warmly welcomed the decision of the UAE government.
"I want to thank the UAE government for supporting Pakistan so generously in our testing times," Khan posted on Twitter shortly after the announcement.
"This reflects our commitment and friendship that has remained steadfast over the years," he added.
Pakistan's Foreign Minister Shah Mahmood Qureshi also thanked the UAE leadership and paid huge tribute to His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, who is also expected to visit Pakistan in January 2019 to strengthen bilateral relationship between the two brotherly Islamic countries.
"We thank His Highness Sheikh Mohamed bin Zayed for his generous financial support of $3 billion. This is a manifestation of the close fraternal ties between Pakistan and UAE which have always stood the test of time," Mahmood tweeted.
The ADFD has financed eight development projects in Pakistan with a total value of Dh1.5 billion, including Dh931 million in grants. The funds covered projects in sectors such as energy, health, education and roads.
Muzzammil Aslam, former CEO of EFG-Hermes Pakistan, said the timely financial help of the UAE will help resolve economic problems of Pakistan in general and balance of payment crisis in particular.
"With $3 billion deposit commitment from the UAE has hedge Pakistan balance of payment crisis," Aslam told
Khaleej Times from Karachi.
He said the Pakistan government led by Imran will now re-assess its request to enter a standby agreement programme with the International Monetary Fund in the days to come.
"The finance team led by Asad Umer is working on plan independent of IMF-suggested measures," he said.
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