UAE rolls over $2 billion of Pakistan debt maturing this month
The United Arab Emirates (UAE) has officially confirmed the
rollover of a total of $2 billion with the State Bank of Pakistan for an
additional one-year term. The announcement coincides with the State Bank of
Pakistan (SBP) receiving $705 million from the International Monetary Fund
(IMF).
On Wednesday, the SBP issued a statement, stating, “UAE has
confirmed the rollover of its two deposits of US$1.0 billion each placed (total
$2 billion) with the State Bank of Pakistan for another one year, which were
maturing in January 2024.”
UAE
to lend $1bln, roll over further $2bln to Islamabad
Additionally, the central bank verified the receipt of
SDR528 million (equivalent to $705.6 million) on January 16, 2024, from the IMF
following the successful completion of the first review by the Executive Board
of the IMF under the Stand-By Arrangement (SBA). The statement further
mentioned that this disbursement would be reflected in SBP reserves for the
week ending on January 19, 2024.
Last Thursday, the IMF Executive Board approved a $700
million loan tranche for Pakistan, marking the completion of the first review
of Pakistan’s economic reform program supported by the IMF’s Stand-By
Arrangement (SBA). The approval allows for an immediate disbursement of SDR 528
million (approximately US$700 million), bringing the total disbursements under
the SBA to US$1.9 billion. This inflow from the IMF is expected to enhance the
country’s foreign exchange reserves, which currently stand at $13.2 billion.
The breakdown of the foreign reserves indicates that the State Bank of Pakistan
holds $8.2 billion, while commercial banks hold $4.9 billion.
Islamic
Development Bank grants $100 million to Pakistan for polio eradication
With international financial institutions, including the
World Bank, Asian Development Bank, and Asian Infrastructure Investment Bank,
announcing loans for Pakistan following the staff level agreement with the IMF
in December 2023, the country is witnessing increased support for its economic
initiatives.
Source: The Nation