Finance Minister Ishaq Dar said on Wednesday that the United Arab Emirates (UAE) has deposited $1 billion in Pakistan’s central bank, another boost for the country’s depleting foreign exchange reserves.
“We received the confirmation some time ago that our brother country, our friend, the UAE has deposited $1bn to the State Bank’s account. The Federal Reserves Bank has confirmed that this amount has been credited to the [SBP’s] account,” he said in a video message broadcast live on television.
The minister’s announcement came a day after Saudi Arabia deposited $2bn with the central bank and just hours before a crucial meeting of the International Monetary Fund’s (IMF) executive board that Pakistan hopes would approve a $3bn standby arrangement agreed last month.
Prime Minister Shehbaz Sharif also expressed gratitude saying: “Grateful to my dear brother, H.H. Mohamed Bin Zayed, President of the UAE, for the deposit of $1 billion with the State Bank of Pakistan. As a time-tested friend & brotherly country, the UAE has always come forward to support Pakistan.”
The prime minister said Pakistan “deeply acknowledge this kind gesture & consider it critical to our efforts to stabilize the economy”.
Grateful to my dear brother, H.H. Mohamed Bin Zayed, President of the UAE, for the deposit of $1 billion with the State Bank of Pakistan. As a time-tested friend & brotherly country, the UAE has always come forward to support Pakistan. We deeply acknowledge this kind gesture &…
— Shehbaz Sharif (@CMShehbaz) July 12, 2023
The central bank’s declining foreign exchange reserves—which had fallen to barely enough to fund a month’s worth of regulated imports—will be supported financially by Saudi Arabia and the United Arab Emirates.
The cash also gives rise to optimism that the IMF executive board will approve the new agreement, which is anticipated to ease the nation’s financial problems.
If approved, the nine-month standby agreement will contribute $3 billion, or 111 percent, of Pakistan’s IMF quota.
