Finance Minister Ishaq Dar has announced that the United Arab Emirates (UAE) has deposited $1 billion with the State Bank of Pakistan (SBP). The confirmation from the Federal Reserve Bank highlights the importance of these funds in securing the International Monetary Fund (IMF) deal, as the release of the loan was contingent on the deposition of funds by countries including the UAE, Saudi Arabia, and China.
The deposit of $1 billion by the UAE is expected to boost Pakistan’s foreign exchange reserves, providing stability and enhancing the country’s economic outlook. Finance Minister Ishaq Dar expressed his gratitude to the UAE government on behalf of Prime Minister Shehbaz Sharif and Chief of Army Staff Gen Asim Munir, recognizing the significant contribution of the UAE in supporting Pakistan’s economic goals.
This announcement comes shortly after Saudi Arabia deposited $2 billion with the central bank, further strengthening Pakistan’s foreign exchange reserves. The timing is crucial, as it precedes a crucial meeting of the IMF’s executive board, where Pakistan hopes to secure approval for a $3 billion standby arrangement agreed upon last month.
The influx of funds from the UAE and Saudi Arabia, combined with the expected IMF approval, bodes well for Pakistan’s economic stability and progress. These financial measures demonstrate the support and confidence of international partners in Pakistan’s economic potential, providing a strong foundation for sustainable growth and development in the country.
