Pakistan to soon receive second tranche of $2b from Abu Dhabi

Photo: AFP

Abu Dhabi has agreed to deposit US$2 billion to the State Bank of Pakistan as part of its agreement to loan $3 billion to Islamabad.

A deposit agreement was made between the State Bank of Pakistan and the Abu Dhabi Fund for Development on Saturday.

The funds are expected to be received shortly.

Related: Pakistan receives first UAE installment of $1 billion

In January, the State Bank of Pakistan received $1 billion of the $3 billion loan promised to the country by the UAE. The rate of return for the loan is 3%.

The agreement was signed by State Bank of Pakistan Governor Tariq Bajwa and the Abu Dhabi Development Fund chairperson.

The funds were to be transferred to Pakistan in three instalments. Pakistan’s foreign reserves went up to $14 billion from the previous $13 billion after the first instalment was transferred.

Related: Pakistan, Abu Dhabi sign agreement on $3b aid package

In December, the UAE announced a $3 billion bailout package for Pakistan to overcome its balance of payment issue under the Abu Dhabi Fund for Development.

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