Abu Dhabi: UAE will provide the much-awaited $3-billion deposit to help Pakistan come out of its economic crisis and to boost liquidity.
The Abu Dhabi Fund for Development, ADFD, Tuesday formalised a $3 billion (Dh11 billion) deposit into the State Bank of Pakistan to support the country achieve the long-term objectives of its monetary policy.
Announced in December 2018, the decision to formalise the deposit was made under the directives of the President His Highness Shaikh Khalifa Bin Zayed Al Nahyan, and His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
Mohammad Saif Al Suwaidi, Director General of ADFD, and Tariq Bajwa, Governor of the State Bank of Pakistan, signed the agreement on Tuesday at the ADFD headquarters in Abu Dhabi.
Moazzam Ahmad Khan, Ambassador of Pakistan to the UAE, Khalifa Al Qubaisi, Deputy Director General of ADFD, and other senior representatives of the two parties attended the signing ceremony, according to the official news agency Wam.
Al Suwaidi said: The directive to deposit $3 billion with the State Bank of Pakistan aligns with the UAE leadership’s keenness to bolster Pakistan’s economy, help its government achieve financial stability and overcome economic challenges, and drive comprehensive development in the country.”
State Bank of Pakistan Governor Bajwa, praised the UAE leadership for their continued support to the people of Pakistan.
He also noted the support from ADFD over the years has stimulated economic growth and contributed to sustainable development.
Ambassador Khan said: "We are grateful to the leadership and people of the UAE for their generous balance of payment support.
"It will go a long way in addressing Pakistan’s current economic challenges. It shows UAE’s continued commitment and friendship that has always remained an abiding element of our special relations."
$3Bdeposit made to the State Bank of Pakistan by the UAE to to help Pakistan come out of its economic crisis and boost liquidity
Last year, Saudi Arabia also deposited $3 billion into State Bank of Pakistan and pledged to provide $3.2billion oil deferred payment over the next three years. Pakistan facing its worst economic crisis is also in talks with the IMF for US$15billion loan.
Pakistan Ambssador Khan said that the money would be deposited into the State Bank of Pakistan this week.
The Abu Dhabi Fund for Development has already financed eight development projects in Pakistan with a total value of Dh1.5 billion, including Dh931 million in grants. The funds covered projects in sectors such as energy, health, education and roads.
ADFD Major Projects in Pakistan:
ADFD has invested considerable capital into projects in Pakistan’s transport sector. In 2013, ADFD funded the Dh227 million grant for the construction of the UAE-Pakistani Friendship Road. Linking the southern and northern parts of the Waziristan region, the 72 km road facilitates the movement of people and goods between three major cities and 20 villages.
ADFD funded two healthcare projects in Pakistan worth Dh230 million, aimed at elevating living standards.
In 2013, the Fund allocated Dh217 million for the construction of the Emirates Hospital – a 1,000-bed integrated specialty medical centre. Catering to Pakistani military personnel and their families, as well as civilians with critical conditions, the facility has the capacity to receive 6,000 patients daily.
ADFD also allocated Dh13 million to fit out the Sheikh Zayed Hospital in Lahore with modern equipment in compliance with best international standards in 2006.
ADFD has played a crucial role in enhancing the country’s education sector. In 2013, the Fund financed Dh46 million training colleges. The project involved the construction of three training colleges in remote areas – Warsak College in the Khyber Pakhtunkhwa province, as well as Wana College and Cadet College Spinkai, both in South Waziristan.
In addition, ADFD earmarked Dh14 million to fund expansion works at the Sheikh Zayed International Academy, SZIA, in Islamabad in 2009.
To ensure an adequate and reliable power supply, ADFD funded Dh66 million rehabilitate Tarbela Dam in 1981.
Pakistan-UAE ties at a glance
• Pakistan, UAE relations date back to the UAE’s formation in 1971, and have since evolved into wide-ranging cooperation.
• The UAE is Pakistan’s largest trading partner in the Middle East and a major source of investments.
• The UAE is home to more than 1.6 million Pakistani expats who remitted $4.5 billion in the fiscal year 2017-2018.