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UAE Crown Prince to visit Pak; likely to announce $6.2 bn assistance

The UAE government's financial assistance comes as Pakistan is negotiating a $8 billion bailout package from the International Monetary Fund to overcome a severe balance-of-payments crisis

Press Trust of India  |  Islamabad 

Photo: Wikimedia Commons
Photo: Wikimedia Commons

The Sheikh will visit on Sunday after the two sides finalised the terms and conditions for a USD 6.2 billion assistance package to Islamabad to bolster its foreign exchange reserves and the government's fiscal policies.

The government's financial assistance comes as is negotiating a USD 8 billion bailout package from the Monetary Fund (IMF) to overcome a severe balance-of-payments crisis that threatens to cripple the country's economy.

The package, which is expected to be announced by the Crown Prince, involves USD 3.2 bn worth of oil supplies on deferred payment, besides a USD 3 bn cash deposit, the Dawn reported.

"The UAE's package was exactly of the same size and terms and conditions as given by The package was finalised on Thursday evening," a member of the Pakistan's cabinet was quoted as saying by the paper.

The financial assistance from UAE is same to the support received from

"With this, Pakistan would get a total saving of about USD 7.9 bn on oil and gas imports from the two friendly countries -- accounting for more than 60 per cent of annual oil import bill of about USD 12-13 bn, the cabinet member said.

This includes about USD 3.2 bn each of oil supplies on deferred payments from the UAE and and about USD 1.5 bn trade finance from the Islamic Trade Finance Corporation (ITFC), the paper reported.

Pakistan's all weather ally has also pledged to provide a generous aid to Islamabad to overcome its financial woes. Beijing has not yet revealed the quantum of its financial support.

Prime Minister has said Chinese President has asked him not to reveal the amount.

The is making all efforts to ensure that any IMF loan to Pakistan is not used to repay its Chinese debt.

The US feels that the huge Chinese debt is responsible for Pakistan's economic challenges.

"We are working and making clear within the IMF that if it were going to supply any funding to Pakistan that it would not be used to repay Chinese loans," David Malpass, Under Secretary of Treasury for Affairs, told lawmakers during a recent Congressional hearing.

There are concerns among American lawmakers that the Pakistan may use the IMF money to repay the Chinese debts.

First Published: Sat, January 05 2019. 13:20 IST