ISLAMABAD: Pakistan reportedly received $ 1 billion financing commitment from United Arab Emirates (UAE). Written guarantee in this regard is too expected in ongoing week after Finance and Revenue Minister Ishaq Dar put special request to UAE officials, sources in Ministry of Finance (MoF) told.

UAE’s financing will pave way for release of $ 1.3 billion pending tranche by the International Monetary Fund (IMF) as global lender is awaiting assurances for Pakistan from friendly countries including UAE.  

Sources said UAE was likely to provide written guarantee regarding $ 1 billion financing this week and the news will be conveyed to Fund officials by Finance Secretary Hamed Yaqoob Sheikh during annual meeting currently being held in Washington.

International financial institution has asked Pakistan to secure assurances on external financing from friendly countries and multilateral partners to fund its balance of payment gap for this fiscal year, which ends in June. Last week, Saudi Arabia pledged $ 2 billion and informed IMF it will provide financing to Pakistan.

Development comes after Prime Minister Shehbaz Sharif and Finance Minister Ishaq Dar requested UAE officials in order to complete prerequisites of Fund. IMF receives $ 2 billion Saudi assurance for Pakistan.

Pakistan moved one step closer to revival of crucial bailout package of International Monetary Fund.

Reports said Kingdom is yet to make an official announcement in this regard. It is expected that Saudi government would announce new loans for Pakistan during upcoming visit of Prime Minister Shehbaz Sharif.

Published in The Daily National Courier, April, 13 2023

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