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UAE to deposit $3 billion in Pakistan's central bank

AFP

ABU DHABI, UNITED ARAB EMIRATES -- The United Arab Emirates will deposit $3 billion (Rs. 419.6 billion) in the State Bank of Pakistan to help "enhance liquidity" as the country struggles with a balance of payments crisis, state media said.

The transfer of 11 billion dirhams by the government-owned Abu Dhabi Fund for Development (ADFD) is expected to occur in the "coming days", the WAM news agency said.

Quoting a statement from the ADFD, the state news agency said the amount is meant "to support the financial and monetary policy of the Islamic Republic of Pakistan".

It will "enhance liquidity and monetary reserves of foreign currency" at the central bank, it added.

Pakistan is facing a widening balance of payments crisis. The rupee plunged almost 5% to a record low at the end of November, after what appeared to be a sixth devaluation by the central bank in the past year.

It also secured $6 billion (Rs. 839.2 billion) in funding from Saudi Arabia and struck a 12-month deal for a cash lifeline during Prime Minister Imran Khan's visit to the kingdom in October.

Islamabad also received billions of dollars in Chinese loans to finance ambitious infrastructure projects.

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Comment bubble | 01-09-2019

its good

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