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Pakistan gets $1 billion boost from UAE ahead of key IMF decision

ISLAMABAD: Pakistan‘s state financial institution coffers have been additional boosted Wednesday by a $1 billion deposit from the United Arab Emirates, officers mentioned, forward of a key Worldwide Financial Fund (IMF) board assembly to approve new funding.
The deposit comes a day after Saudi Arabia transferred $2 billion to Islamabad, and brings the state’s international reserves to $7.5 billion — greater than double final week’s account stability.
The financial system has been tormented by a balance-of-payments disaster because it makes an attempt to service crippling exterior debt, whereas months of political chaos have scared off international funding.
Inflation has rocketed, the rupee has plummeted, and the nation is struggling to afford imports, inflicting a extreme decline in industrial output.
Securing monetary assist from pleasant nations has been a key situation of the IMF for approving a brand new standby deal for Pakistan value $3 billion.
The package deal can be thought of for approval by the IMF’s govt board assembly in Washington this week.
“As a time-tested good friend & brotherly nation, the UAE has at all times come ahead to assist Pakistan,” Prime Minister Shehbaz Sharif tweeted late Wednesday.
“We deeply acknowledge this type gesture & take into account it essential to our efforts to stabilise the financial system.”
Finance Minister Ishaq Dar mentioned the UAE deposit can be mirrored on the books by Friday.
Years of economic mismanagement have pushed Pakistan’s financial system to the restrict, exacerbated by the Covid pandemic, a world vitality disaster and document floods that submerged a 3rd of the nation final yr.
Pakistan’s headline inflation eased for the primary time in seven months in June, a shiny spot for a beleaguered authorities that should name an election later this yr.

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