UAE has deposited $1bn in Pakistan’s central bank: Ishaq Dar

Finance Minister Ishaq Dar said on Wednesday that the United Arab Emirates (UAE) has deposited $1 billion in Pakistan’s central bank, another boost for the country’s depleting foreign exchange reserves.

“We have gotten the confirmation that the UAE has deposited the amount into the State Bank of Pakistan (SBP),” said Dar in a video message. “Pakistan’s reserves have now increased by $3 billion after the $2 billion from Saudi Arabia.”

“The improved position will be reflected in the reserves on July 14.”

The inflows were committed by the UAE and Saudi Arabia earlier this year, and formed part of the financing assurances needed by the International Monetary Fund (IMF) to complete Pakistan’s ninth review.

While Pakistan’s ninth review remained unsuccessful, the government managed to get staff-level approval for a new nine-month $3-billion Stand-By Arrangement (SBA).

The IMF Executive Board is expected to take up Pakistan’s SBA agenda on July 12 (today).