ISLAMABAD: Pakistan has secured financial support of about USD 4 billion from the United Arab Emirates and Saudi Arabia to prevent itself from entering into default amid shrinking foreign exchange reserves, flood damages and an economic slowdown, reported Pakistan-based ‘Dawn’ newspaper.
According to two separate official announcements, UAE pledged to roll over USD 2 billion debt payable over the next two months and topped this with an additional USD 1 bn support promised during Pakistan Prime Minister Shehbaz Sharif’s visit to the UAE.
An agreement was also signed by the Saudi Fund for Development (SFD) in Pakistan to fund USD 1 billion worth of oil imports on overdue payment. Pakistan central bank’s reserves dropped to USD 4.34 billion on Thursday, the lowest since February 2014.
- timesofindia.com