UAE transfers first $1 billion to State Bank of Pakistan

LAHORE – United Arab Emirates (UAE) has transferred one billion dollars to State Bank of Pakistan's Account.

According to Radio Pakistan, the transfer of one billion dollars is the first tranche of three billion dollars announced for improving Pakistan’s foreign currency reserves after Prime Minister Imran Khan's visit.

Amount received under an agreement signed on Tuesday, Jan 22, 2019 by Governor #SBP Mr. Tariq Bajwa and Director General of Abu Dhabi Fund for Development. #Pakistan #UAE

— SBP (@StateBank_Pak) January 24, 2019

Last week, the Abu Dhabi Fund for Development said in a statement that it will deposit the said amount in the coming days to enhance liquidity and monetary reserves of foreign currency at the Bank.

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The country's support for Pakistan's fiscal policy is based on the historical ties between the two people and the two friendly countries and the desire to further develop the bilateral cooperation in all fields, the statement said.

It continued that the Abu Dhabi Fund for Development has financed eight development projects in Pakistan with a total value of AED1.5 billion, including AED931 million in grants.

"The funds covered projects in sectors such as energy, health, education and roads," the statement added.

Following the announcement, Prime Minister Imran Khan thanked the UAE government for supporting Pakistan.

I want to thank the UAE govt for supporting Pakistan so generously in our testing times. This reflects our commitment and friendship that has remained steadfast over the years.

— Imran Khan (@ImranKhanPTI) December 21, 2018

The ruling Pakistan Tehreek-e-Insaf government has also approached China and is in negotiation with the International Monetary Fund to seek packages to support the economy.

Finance Minister Asad Umar had also claimed that the country's foreign exchange reserves have increased by 12.5 per cent after the recent deposits.