Finance Minister Ishaq Dar announced on Friday that United Arab Emirates (UAE) officials have informed the International Monetary Fund (IMF) of their plans to provide $1 billion in aid to Pakistan.
The move would pave the way for Pakistan to open a major loan tranche of $1.1 billion from the IMF as the fund was seeking approval from international partners to meet Pakistan’s financing gap needs.
“UAE officials confirm [$1] billion bilateral support to Pakistan to IMF,” Dar announced on Twitter.
IMF program — 9th Review Update:
— Ishaq Dar (@MIshaqDar50) April 14, 2023
UAE authorities have confirmed to IMF for their bilateral support of US $ One billion to Pakistan.
State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities.
AlhamdoLilah!
The Finance Minister added that the State Bank of Pakistan (SBP) is now busy with the necessary documents to receive the said deposit from the UAE authorities.
Last week, the Washington-based fund told Pakistan it had received confirmation of an additional $2 billion in reserves from Saudi Arabia.
“The IMF has indicated that it has received an assurance from Riyadh,” Minister of State for Finance Ayesha Ghos Pasha told reporters in Islamabad last week.
Saudi Arabia’s pledge of $2 billion and the UAE’s pledge of $1 billion in foreign aid to Pakistan are among the final conditions for an IMF deal that Islamabad needs to avoid default.
Pakistan has less than a month’s worth of foreign exchange reserves and is awaiting a $1.1 billion bailout package from the IMF that has been delayed since November due to issues related to fiscal policy adjustments.
‘Pakistan has not yet reached the default level’
A day ago, IMF Managing Director Kristalina Georgieva said that Pakistan has not yet reached the default level.
Addressing a news conference on the sidelines of the spring meeting of the Bretton Wood Institutions at the Washington-based fund’s headquarters, Georgieva said the fund has received confirmation from international partners to meet Pakistan’s financing gap needs. doing.
Responding to a question about the default threat facing Pakistan, he said: “Pakistan has not yet reached that level and will not, but the country needs a sustainable policy framework to avoid such threats.” Required”.
He said the lender is working very hard with the authorities in Pakistan in the context of the current program to ensure that the country has a policy framework in place to prevent unsustainable debt.
Georgieva said, “I hope that with everyone’s goodwill, and with the implementation of what has already been agreed by the Pakistani authorities, we can successfully complete our current program.”
