Pakistan said the United Arab Emirates had agreed to increase financial aid to Pakistan to $3 billion, a key step to boost foreign exchange reserves for the South Asian nation reeling from economic crisis.
United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan has agreed to provide a new loan of $1 billion and roll over an existing loan of $2 billion after meeting with Prime Minister Shehbaz Sharif, the Pakistan Prime Minister’s Office said in a statement on Thursday.
The UAE’s support comes two days after Saudi Arabia’s Crown Prince Mohammed bin Salman announced he was considering increasing the deposit at Pakistan’s central bank to $5 billion. Earlier this week, Pakistan also pledged more than $10 billion in aid after floods that inundated a third of the country and cut growth in half.
Pakistan’s economy has been strapped for funds after a standoff with the International Monetary Fund over tax targets delayed loan repayments. The nation is facing a dollar shortage, with foreign exchange reserves falling to $5.85 billion, which covers less than a month’s worth of imports.
The two countries also agreed to deepen investment cooperation and enable opportunities for investment integration, the statement said. The UAE announced last year that it would invest $1 billion in Pakistani companies in various sectors.
By: Vaishali Verma
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