The United Arab Emirates and Pakistan made an agreement in a USD 3 billion bailout package, as a part of the support of Abu Dhabi for boosting the diminishing of the cash-strapped country’s dollar reservation.
In the last year, the UAE had declared to provide USD 3 billion financial aid to Pakistan after Saudi Arabia made same commitment for assisting Islamabad successfully to overcome the crisis of international payment and to avoid a rigid International Monetary Fund deal.
The agreement was signed between the Chief of the State Bank of Pakistan, Tariq Bajwa and Director General of Abu Dhabi, Mohammed Saif Al Suwaidi. The representative of Foreign Office, Mohammed Faisal posted on Twitter, “UAE has formalized $3 billion deposit in the State Bank of Pakistan. DG ADFD & the Governor SBP inked the agreement at #ADFD Headquarters in Abu Dhabi ”.
According to him, the agreement will assist Pakistan to achieve financial steadiness and overcoming the financial challenges. The UAE made the commitment that the financial assistance, while Pakistani Prime Minister Imran Khan travel to Qatar in the last month to attempt to find investment and provision of LNG on impeded payments.
According to the 15 years, a long contract between Qatar and Pakistan will ensure the supply of LNG. The UAE and Saudi governments have attempted a major role in assisting Pakistan for meeting around USD 12 billion lack in a balance of payments in 2018-19 fiscal year according to the officials of the government.