UAE's USD 6.2 billion bail-out package for Pakistan

The United Arab Emirates (UAE) has finalised a bail-out package worth around USD 6.2 billion to assist Pakistan's struggling economy. The package will enable Pakistan to deal with its balance-of-payments crisis.

Dawn newspaper has reported that the bail-out package will be announced by the Crown Prince Sheikh Mohammed bin Zayed Al Nahyan of UAE, who will be embarking on his two-day visit to Pakistan on January 6.

The package involves USD 3.2 billion worth of oil supplies on deferred payment, in addition to a cash deposit worth USD three billion.

Quoting a source, Dawn stated that the bailout package, finalised on January 3, was almost of the same size of the bail-out given by Saudi Arabia to Pakistan last year in October.

The source said that the bail-out package would further help Pakistan to save around USD 7.9 billion on oil and gas imports, accounting to more than 60 per cent of annual oil import bill of about USD 12 to 13 billion, from the UAE and Saudi Arabia.

Pakistan is also negotiating with the Government of Qatar in order to seek some reductions in the prices of liquefied natural gas (LNG).