KARACHI: Pakistan will receive promised $3 billion from UAE government within next couple of days after Abu Dhabi Fund for Development, ADFD, on Tuesday formalized $3 billion (AED11 billion) deposit into central bank of Pakistan to support current account challenges the country is facing, officials say.
Mohammed Saif Al Suwaidi, Director General of ADFD, and Tariq Bajwa, Governor of the State Bank of Pakistan, signed the agreement at the ADFD headquarters in Abu Dhabi in the presence of Moazzam Ahmad Khan, Ambassador of Pakistan to the UAE, Khalifa Al Qubaisi, Deputy Director General of ADFD, and other senior representatives of both governments, ADFD announced on Tuesday.
The United Arab Emirates had announced in December 2018 to deposit $3 billion cash in the account of the State Bank of Pakistan, in a move to support the financial and monetary policy of the country and enhance liquidity and monetary reserves of foreign currency of Pakistan.
The decision was taken under the directives of UAE President, Sheikh Khalifa bin Zayed Al Nahyan, and Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, Sheikh Mohamed bin Zayed Al Nahyan-who recently visited Pakistan.
Speaking at the signing ceremony, Mohammed Saif Al Suwaidi said, “The directive to deposit $3 billion with the State Bank of Pakistan aligns with the UAE leadership’s keenness to bolster Pakistan’s economy, help its government achieve financial stability and overcome economic challenges, and drive comprehensive development in the country.”
“UAE has always supported Pakistan economically”, Tariq Bajwa said adding” this is also reflected of same strong bond that both countries have”.
Bajwa added” “This is the help UAE government is providing us to overcome the short term difficulties that we are facing”. “The $3 billion we are going to receive as deposit from Abu Dhabi Fund for Development is going to help us to tackle current account challenges”.
Abid Qamar, Chief spokesperson of State Bank of Pakistan told Arab News that the transfer of funds after signing the agreement is expected within next couple of days “hopefully by the end of week”.
Pakistan is also seeking import of oil worth $3 billion on deferred payment from UAE, similar to the facility extended by the Riyadh to Islamabad.
UAE is supporting Pakistan economically in telecom, transport, water and agriculture, healthcare, and education sectors.
Pakistan is also expecting substantial amount of investment from the UAE. The major focus sectors of the UAE investors are petrochemical, real estate, port and shipping development, agriculture and corporate farming.
“I am expecting $15 billion from UAE during next 3 to 5 years tenure”, Haroon Sharif, Minister of State and Chairman of Pakistan Board of Investment, told Arab News recently.
