The United Arab Emirates has confirmed its commitment to the International Monetary Fund (IMF) to provide $1 billion financial support to Pakistan, Pakistani Finance Minister Ishaq Dar tweeted on Friday.
"The UAE authorities have confirmed to the IMF the support of $1 billion. The State Bank of Pakistan is preparing to receive this deposit," the minister said.
The UAE financial assistance is to accelerate the signing of the long-term staff-level agreement between Pakistan and the IMF and unlock the fund's $1.1 billion tranche as part of the $7 billion assistance program. As local media noted, with Pakistan's central bank reserves now falling to a critical level of about $4 billion, the IMF tranche is crucial for external financing and preventing the country from defaulting on its foreign debt payments. In March, Saudi Arabia, China and the UAE made commitments to provide external financing to Pakistan.
On April 13, IMF Managing Director Kristalina Georgieva said the fund hopes to successfully complete an aid program for Pakistan. "I hope that we can successfully complete our ongoing program with that country and avoid increasing Pakistan's debt to unsustainable levels," the IMF chief said.
Since late January, Pakistan has been negotiating with the International Monetary Fund (IMF) for another $1.1 billion tranche. One of the important conditions imposed by the international lender on Islamabad is to guarantee external financing needed to ensure the solvency of the Islamic republic.
Pakistan's financial assistance program of more than $7 billion was approved by the fund's management on July 3, 2019. The seven tranches granted to the country totaled $4.2 billion. The ninth review of Pakistan's compliance with the fund's requirements, which consist of structural reforms of the state financial system and economy, is currently underway.
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Based on materials from TASS