Pakistani Finance Minister Ishaq Dar speaks with The Associated Press during an interview at the Pakistani Embassy on Oct14, 2022, in Washington, DC. The United Arab Emirates has confirmed to the International Monetary Fund that it will provide support of $1 billion to Pakistan, Dar said on April 14, 2023. (PHOTO / AP)
ISLAMABAD – The United Arab Emirates has confirmed to the International Monetary Fund that it will provide support of $1 billion to Pakistan, the South Asian country's finance minister said on Friday.
The commitment is one of the requirements that the fund has said it needs to move ahead on a months-long delayed bailout package to shore up the country's struggling economy.
Saudi Arabia last week had also told the IMF it will provide $2 billion in financing to Pakistan
"State Bank of Pakistan is now engaged for needful documentation for taking the said deposit from UAE authorities," Pakistan Finance Minister Ishaq Dar said on Twitter.
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The IMF's managing director Kristalina Georgieva said the previous day the fund was also in talks with friendly countries of Pakistan to provide financial assurances so it can complete the program.
Saudi Arabia last week had also told the IMF it will provide $2 billion in financing to Pakistan.
Pakistan has less than a month's worth of foreign exchange reserves and is awaiting a bailout package of $1.1 billion from the IMF that has been delayed since November over issues related to fiscal policy adjustments. The fund has also said it needs assurances that the balance of payments deficit is fully financed for the fiscal year ending in June.