ISLAMABAD – Finance Minister Ishaq Dar announced that Pakistan would receive $1 billion in support from the United Arab Emirates (UAE), and that the UAE authorities had notified the International Monetary Fund (IMF) of their plans.
This move would help unlock the critical $1.1 billion loan tranche from the IMF as the Fund was securing confirmation from other international partners to meet Pakistan’s financing gap requirements.
Dar revealed the news on Twitter and added that the State Bank of Pakistan was now preparing the necessary documentation for the deposit from the UAE authorities.
IMF program — 9th Review Update:
UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.
State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.
AlhamdoLilah!
— Ishaq Dar (@MIshaqDar50) April 14, 2023
Last week, the IMF confirmed Saudi Arabia’s $2 billion deposit to Pakistan. The UAE’s $1 billion and Saudi Arabia’s $2 billion in external financing support were among the final conditions for an IMF deal that Islamabad needs to avert a default.
With less than a month’s worth of foreign exchange reserves, Pakistan is awaiting a $1.1 billion IMF bailout package that has been delayed since November due to fiscal policy adjustment issues.
IMF Managing Director Kristalina Georgieva said on Thursday that Pakistan had not yet reached the default level but required a sustainable policy framework to avert such risks. She expressed hope that with the goodwill of all parties and the implementation of what had been agreed by the Pakistani authorities, the current program would be successfully completed.
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