Pakistan Hopes on IMF Arrangement After UAE $1B Pledge
FILE PHOTO: The logo of the State Bank of Pakistan (SBP) is pictured on a reception desk at the head office in Karachi, Pakistan July 16, 2019. REUTERS/Akhtar Soomro/File Photo
The International Monetary Fund has been informed by the United Arab Emirates that it has given Pakistan assistance worth $1 billion.
This was stated on Friday by a senior official in Islamabad, allaying concerns that the South Asian nuclear power would fail.
According to Pakistan’s finance minister Ishaq Dar, the central bank was receiving the money from the Gulf country.
The IMF tied the renewal of a 6.5 billion dollar rescue package to funding from Pakistan-friendly nations including China, Saudi Arabia, and the United Arab Emirates.
With only sufficient reserves of currency to cover one month’s worth of imports, Pakistan, a Muslim country with a nuclear arsenal and a population of over 220 million, is in danger of defaulting on its international debt.
The final of several prerequisites established by the international lender to resuscitate the program that was initially approved in 2019 but repeatedly suspended was support from the friendly nations.
The head of the IMF dismissed the prospect of a default by Pakistan on Thursday, saying it was too early to predict whether Islamabad would follow Ghana or Sri Lanka, two recent defaults.
The South Asian country’s long-time political ally, Saudi Arabia, has already committed $2 billion.
We anticipate signing the IMF agreement soon, Mr. Dar told Pakistani television station Geo TV.
