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UAE to deposit USD 3 billion in State Bank of Pakistan

F.P. Report

ABU DHABI: The United Arab Emirates has announced its intention to deposit US$3 billion in the State Bank of Pakistan to support the financial and monetary policy of the Islamic Republic of Pakistan, the Emirates News Agency reported on Friday.

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

“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 Emirates News Agency stated.

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.

In a message on Twitter, Prime Minister Imran Khan thanked UAE government for supporting Pakistan.

Earlier on December 14, Pakistan received second tranche of financial package signed between Pakistan and Saudi Arabia.

Saudi Arabia has transferred the second installment of $1 billion in the State Bank of Pakistan “as balance of payment support” and by January, the country is expected to receive third and final installment, completing the promise of the kingdom.

The foreign exchange has depleted fast in last three months and about $1 billion has been wiped out since the arrival of first financial assistance of $1 billion.

State Bank reserves registered an increase after the second installment from Saudi Arabia, up by $1 billion to $8.2 billion, following the arrival of UAE financial assistance the central bank reserve might scale up to $11 billion.

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