An official source in Abu Dhabi emphasised the UAE's intention to invest $1 billion in Pakistani companies in various economic and investment sectors, state news agency WAM reported on Friday, a key development that takes Pakistan closer to meeting what the International Monetary Fund (IMF) calls a funding gap ahead of the board meeting scheduled later this month.
"The move aims to explore new investment opportunities and areas for cooperation in projects across various sectors, so as to expand bilateral economic relations in the best interest of the two countries," stated WAM.
"It also emphasises the keenness of the UAE and Pakistan to continue cooperation in various fields, which include gas, energy infrastructure, renewable energy, health care, biotechnology, agricultural technology, logistics, digital communications, e-commerce and financial services."
Earlier, Pakistan's Finance Minister Miftah Ismail had said that “one friendly country” has confirmed its assurance of helping Pakistan meeting its funding gap, saying that an announcement will be made soon.
Miftah had said that another friendly country will also confirm its assurance in a day or two.
“I have conveyed this to the IMF that you can also contact these two friendly countries (for the assurance),” said Miftah.
The developments come as the IMF conveyed that Pakistan, with the increase in petroleum development levy (PDL), completed the last prior action for the combined seventh and eighth review, adding that the board meeting is tentatively planned for late August once adequate financing assurances are confirmed.
The Washington-based lender wants to ensure Pakistan would manage to secure $4 billion in additional funding to ensure Islamabad does not have a financing gap after the IMF loan.
The IMF board is currently scheduled to meet in the last week of August, and would announce its decision on the disbursement of $1.17 billion to Pakistan. In July, the IMF had announced its staff-level agreement (SLA) with Pakistan authorities for the conclusion of the combined seventh and eighth review of the Extended Fund Facility (EFF).