UAE to extend $6.2bn cash, oil and investment package to Pakistan

The deal will be signed during Crown Prince Mohammed Bin Zayed's two day visit to Pakistan which begins today
UAE to extend $6.2bn cash, oil and investment package to Pakistan
The aid package will be exactly the same as agreed by Saudi Arabia in October, according to the report.
By Shayan Shakeel
Sun 06 Jan 2019 12:03 PM

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.

Crown Prince Mohammed Bin Zayed to arrive in Islamabad today

$6.2 billion aid package as well oil storage investment and deep refinery facility agreements to be signed and discussed

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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