By Meleltus EZE
The United Arab Emirates (UAE) on Friday said that it would deposit three billion dollars in Pakistan’s central bank to help the country overcome a deepening economic crisis.
The Abu Dhabi Fund for Development will deposit the amount in the coming days to enhance liquidity and monetary reserves of foreign currency at the bank, the official UAE news agency WAM reported.
The UAE support for Pakistan’s fiscal policy is “based on historical ties between the two people and the two friendly countries, and the desire to further develop bilateral cooperation in all fields,” the agency added without details.
Following the announcement, Prime Minister, Imran Khan thanked the UAE government for supporting Pakistan so “generously in our testing times”.
“This reflects our commitment and friendship that has remained steadfast over the years,” Khan said.
The government, however, did not share details of the assistance from the UAE.
Since assuming office in August, Khan has visited the UAE twice and discussed the worsening economic crisis at home.
Pakistan’s new government, which took over in August, has requested a bailout package from the International Monetary Fund (IMF) and reached out to “friendly” countries including Saudi Arabia, China and UAE for support.
Finance Minister, Asad Umer, said in November that Pakistan was facing a 12-billion-dollar financing gap for the current fiscal year.
In October, Saudi Arabia announced it would lend three billion dollars to Pakistan’s central bank for a year to help maintain depleting reserves at a safe level and another three billion dollars for supply of oil on deferred payment.
China has also pledged to help Pakistan to overcome a looming economic crisis. Details of the Chinese assistance are yet to be worked out.
