ISLAMABAD (Reuters) – The United Arab Emirates has confirmed to the International Monetary Fund that it will provide $1 billion in support to Pakistan, the South Asian nation’s finance minister said on Friday.
The pledge was one of requirements the fund said it needed to move forward with a months-long delayed rescue package to prop up the country’s struggling economy.
Pakistani Finance Minister Ishaq Dar tweeted: “The State Bank of Pakistan is now providing the necessary documentation for the withdrawal of the above deposit from the UAE authorities.”
The IMF’s managing director, Kristalina Georgieva, said a day earlier that the fund was also in talks with friendly countries in Pakistan to provide financial guarantees so it could complete the project. plan.
Saudi Arabia also told the IMF last week that it would provide $2 billion in financing to Pakistan.
Pakistan has less than a month of reserves and is awaiting a $1.1 billion bailout package from the IMF
since November Delayed since month due to issues related to
fiscal policy adjustment. The fund also said it needed assurances that the balance of payments deficit was fully financed in the fiscal year to June.