PESHAWAR: In another boost for Pakistan’s struggling economy, the United Arab Emirates (UAE) has announced to deposit $3 billion (equivalent to AED11 billion) in the State Bank of Pakistan (SBP).

Media reports quoting the official WAM news agency of the UAE said $3 billion will be deposited in the SBP to support the financial and monetary policy of the Islamic Republic of Pakistan. The Abu Dhabi Fund for Development said in a statement on Friday that it will deposit the said amount in the coming days to enhance liquidity and monetary reserves of foreign currency at the Bank.

The country’s support for Pakistan’s fiscal policy is based on the historical ties between the two people and the two friendly countries and the desire to further develop the bilateral cooperation in all fields.

WAM reported that the Abu Dhabi Fund for Development has financed eight development projects in Pakistan with a total value of AED1.5 billion, including AED931 million in grants. The funds covered projects in sectors such as energy, health, education and roads.

Following the announcement, Prime Minister Imran Khan thanked the UAE government for its support.

“I want to thank the UAE govt for supporting Pakistan so generously in our testing times. This reflects our commitment and friendship that has remained steadfast over the years,” Imran Khan said in a message on Twitter.

The announcement of financial assistance came a month after Prime Minister Imran Khan’s meeting with Prime Minister of the UAE, Sheikh Mohammed bin Rashid Al Maktoum.

Earlier, Pakistan also secured pledges of financial assistance from Saudi Arabia and China in its bid to fulfil its promise of boosting Pakistan’s struggling economy and get rid of the International Monetary Fund (IMF). Pakistan is deliberately not showing any urgency in accepting package from the IMF hoping that it will secure help from friendly countries and ultimately it will end dependence on the IMF.

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