PM Shehbaz thanks President of UAE for deposit of $1 billion to SBP

PM Shehbaz thanks President of UAE for deposit of $1 billion to SBP

Islamabad (Web Desk): Prime Minister Shehbaz Sharif has expressed gratitude to President of the United Arab Emirates (UAE) Mohammed Bin Zayed for the deposit of $1 billion with the State Bank of Pakistan (SBP).

In a tweet on Wednesday, the premier said that as a time-tested friend and brotherly country, the UAE had always come forward to support Pakistan.

"We deeply acknowledge this kind gesture and consider it critical to our efforts to stabilize the economy," PM Shehbaz said.

Earlier on Wednesday, Finance Minister Ishaq Dar stated that the UAE has deposited $1 billion with the (SBP, bringing the UAE’s total exposure to $3 billion. This amount places it third in terms of cash deposits, following Saudi Arabia’s $5 billion and China’s $4 billion with the central bank.

“We received confirmation today that our brother country, our friend, the UAE, has deposited $1 billion with the State of Pakistan. The Federal Reserve Bank has confirmed that this amount has been credited to the SBP's account,” the finance minister said.

On July 11, Saudi Arabia also deposited $2 billion with the central bank as part of a deal with the International Monetary Fund (IMF).

Meanwhile, the IMF on Wednesday approved $3 billion a 9-month Stand-By Arrangement (SBA) for Pakistan.

“Today, the Executive Board of the International Monetary Fund (IMF) approved a 9-month Stand-By Arrangement (SBA) for Pakistan for an amount of SDR2,250 million (about $3 billion, or 111 percent of quota) to support the authorities’ economic stabilization program,” the global lender said in a statement.

Islamabad signed a short-term IMF deal on June 30 under which the country will receive $3 billion over nine months, subject to approval by the IMF's board.

The Executive Board’s approval allows for an immediate disbursement of SDR894 million (or about US$1.2 billion), the IMF statement read.

The remaining amount will be phased over the programme's duration, subject to two quarterly reviews, it added. The global lender said the SBA was signed at a “challenging economic juncture for Pakistan”.