UAE confirms gift of $1 billion bilateral support to Pakistan to IMF:

 by web desk

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF:

The finance minister says that Pakistan is now dealing with the necessary documentation to take over the advance from the UAE authorities Finance Minister Ishaq Dar announced on Friday that the United Arab Emirates (UAE) has confirmed $1 billion in bilateral support to Pakistan to the International Monetary Fund (IMF), the final condition for finalizing staff-level agreements with the IMF.

The finance czar said on his official Twitter account that the State Bank of Pakistan is now "engaged with the necessary documentation to take over the said advance from the UAE authorities".

Meeting of the IMF term and conditions

At an earlier meeting, Pakistan had strongly urged the IMF to show some flexibility and sign a staff-level agreement, but failed to agree a date despite Islamabad's growing fears of the fallout from a worsening economic crisis.

The request was made by Finance Minister Ishaq Dar in a virtual meeting with Jihad Azour, director of the IMF's Middle East and Central Asia Department. However, the minister could not achieve the desired result, as the IMF again raised the issue of gasoline subsidies and possible fiscal leakages due to the implementation of the subsidy plan.

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF:

The two sides shared their positions on external funding requirements of $6 billion – the amount Pakistan needed between now and June to avoid default.

The IMF was informed that Saudi Arabia had confirmed a $2 billion loan to Pakistan and Dar assured that the UAE would soon confirm its commitment to provide $1 billion.

$6 billion funding plan remains elusive

The two sides also discussed the progress made in the IMF programme, particularly the talks held with the IMF mission during its visit to Pakistan, and the implementation of previous measures, a press statement issued by the finance ministry said.

During the first eight months of this fiscal year, the current account deficit remained at $3.9 billion. Dar assured the IMF that Pakistan would secure an additional $2 billion loan from the World Bank, Asian Infrastructure Investment Bank and commercial banks if the fund signs a staff-level agreement.

UAE confirms gift of $1 billion bilateral support to Pakistan to IMF: