WORLD NEWS | UAE lends over $2 billion to Pakistan

Islamabad [Pakistan]January 19 (ANI): The Abu Dhabi Fund for Development (ADFD) rolled over its $2 billion deposit with the State Bank of Pakistan on Thursday, a move that will create some much-needed room in Pakistan’s tight fiscal space. SBP), according to Geo News.

“Abu Dhabi Fund for Development (ADFD) has carried forward its $2 billion deposit with State Bank of Pakistan, as discussed by #PM @CMShehbaz with His Highness the President of the UAE during his official visit to the UAE last week! Long live Pakistan – UAE Friendship!” Finance Minister Ishaq Dar declared in a tweet.

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The Finance Minister revealed that Prime Minister Sheikh Baz Sharif discussed the extension with United Arab Emirates (UAE) President Sheikh Mohamed bin Zayed Al Nahyan during his recent visit to the country.

It is worth mentioning here that the President of the UAE has agreed to roll over an existing $2 billion loan and provide an additional $1 billion, Geo News reported.

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The UAE’s financial support has provided some respite for the country, which is still reeling from devastating nationwide floods that have caused more than $30 billion in damage.

With the International Monetary Fund’s ninth review to approve a further $1.1 billion in disbursements to Pakistan pending since September, external financing is crucial to the country’s shattered economy.

Currently, Bank Negara has US$450 million in foreign exchange reserves, which are equivalent to three weeks’ worth of imported bills at the central bank.

The bank said foreign exchange reserves held by SBP fell to a critical level of $4.3 billion, enough for just three weeks of imports, the bank said, Geo News reported.

Commercial banks held net foreign exchange reserves of $5.8 billion and total liquid reserves of $10.1 billion, the bank added. (Arnie)

(This is an unedited and auto-generated story from a Syndicated News feed, the content body may not have been modified or edited by LatestLY staff)