The UAE is expected to sign on a $6.2 billion support package for Pakistan that will involve a cash deposit and deferred fuel payments after the South Asian country’s request for assistance to overcome its balance of payments issues.
Agreed after deliberations on January 3, the agreement will be signed during UAE Crown Prince Sheikh Mohammed Bin Zayed’s two-day visit to Pakistan that commences today, according to Pakistan’s Dawn.
The aid package will be exactly the same as agreed by Saudi Arabia in October, according to the report.
The terms of that agreement included $3 billion in cash loaned to the State Bank of Pakistan at an annual interest rate of 3.18% to help stabilise its current account, as well as $3.2 billion in a 1 year oil credit facility.
The combined deferred oil payments account for roughly 60% of Pakistan’s oil imports, a major factor in the country’s trade imbalance.
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