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Wed 23 Jan 2019 04:22 PM

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Pakistan hails UAE economic support after $3bn deposit

Tariq Bajwa, Governor of the State Bank of Pakistan, says deposit will help country overcome 'challenges'

Pakistan hails UAE economic support after $3bn deposit
Tariq Bajwa, Governor of the State Bank of Pakistan.

Tariq Bajwa, Governor of the State Bank of Pakistan (SBP) has hailed a $3 billion deposit from the UAE, saying it will help the country in meeting "current account challenges".

Bajwa, who signed the agreement with the Abu Dhabi Fund for Development to formalise the deposit into the central bank of Pakistan, said in a video message on Twitter that the UAE government's assistance will ride over the short term difficulty Pakistan is facing.

"We are thankful to His Highness, the government, and people of the UAE, and Abu Dhabi Fund, for the support that they are providing us at this difficult juncture," he said in comments published by state news agency WAM.

In 2018, the UAE announced the deposit of $3 billion with the State Bank of Pakistan, under the directives of the UAE President Sheikh Khalifa bin Zayed Al Nahyan and Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to bolster Pakistan's economy.

Prime Minister of Pakistan Imran Khan has made two trips to UAE since assuming power in August 2018. These visits were aimed at strengthening ties between the two countries and discussing mutual interests.

Sheikh Mohamed bin Zayed Al Nahyan also visited Islamabad earlier in January, his first trip to Pakistan since 2007.

"The UAE has always supported Pakistan economically, and Pakistan has also reciprocated in the same spirit," Bajwa added.

ADFD has so far provided AED1.5 billion to fund sustainable development projects in Pakistan in sectors like transport, water and agriculture, healthcare, and education.

The UAE has provided a total of $731.3 million to Pakistan for 328 projects under UAE Pakistan Assistance Programme, UAE-PAP, in infrastructure development, education, health, water and humanitarian fields.

The UAE also provided $114.3 million for six vaccination campaigns in the second and third phases of the assistance programme.

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