UAE will deposit $2 billion with Pakistan State Bank

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UAE will deposit $2 billion with Pakistan State Bank

The State Bank of Pakistan (SBP) on Saturday signed an agreement with Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of US$2 billion.

In a press release issued by the SBP, the central bank said, “These $2 billion funds are expected to be received shortly.”

It may be recalled that the first tranche of US$ 1.0 billion has already been received by SBP in January 2019.

The ADFD is a foreign aid agency set up by the UAE government in 1971. It provides concessionary loans to fund economic and social development projects.

In January this year, the SBP had received first installment of $1 billion from the United Arab Emirates (UAE) to support the country’s financial and monetary policy.

A spokesman of the SBP had said that the bank had received first tranche of one billion US dollars from the package of $3 bn, announced by the UAE after visit of Prime Minister Imran Khan.

On January 22, Pakistan and the UAE had reached an agreement on $3bn support Package in Abu Dhabi.

SBP Governor Tariq Bajwa and Abu Dhabi Fund for Development’s chairman had signed on the agreement in Abu Dhabi. UAE is providing the loan to Pakistan to help enhance liquidity and to support the country’s financial and monetary policy.

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