SBP receives first installment of $3bn loan from UAE

ISLAMABAD: The State Bank of Pakistan (SBP) has received $1 billion from the UAE on Thursday, which is the first installment of a $3 billion aid that had been pledged by the emirates.

The news was confirmed by the SBP’s spokesperson Abid Qamar.

“Pakistan has received $1 billion from the UAE,” he said.

The Abu Dhabi Fund for Development (ADFD) had inked a deal with Pakistan to loan $3 billion to Pakistan in three installments.

The deal was made with the intention of helping Pakistan bridge its current account deficit, which rose to $7.9 billion in the first half of the fiscal year.

The country’s current account deficit is expected to rise to $16-18 billion by June 30.

Pakistan has also inked a similar deal with Saudi Arabia for $3 billion and has so far received $2 billion from the kingdom, with $1 billion yet to be received.

Finance Minister Asad Umar, who had presented the mini-budget in the parliament a couple of days ago, had said that Pakistan was not in a rush to go to the IMF.

“We have other options on the table, including bilateral support from friendly countries,” he had said.
According to reports, the prime minister visited Doha recently and asked the Qatari government to supply LNG to Pakistan on a deferred mode payment basis.

Pakistan’s LNG imports payments amounted to $2.035 billion last year.