UAE approves additional USD 1 billion funding to Pakistan: Finance Minister

Pakistans Finance Minister Ishaq Dhar on Friday announced that the UAE has approved USD 1 billion in financial support taking the cashstrapped nation a step closer to unlocking the crucial IMF bailoutPakistan is tackling a major economic crisis as it awaits a muchneeded USD 11 billion tranche of funding from the Washingtonbased International Monetary Fund part of a USD 65 billion bailout package the IMF approved in 2019Finance Minister Dar said the Gulf nation has confirmed its commitment to the International Monetary Fund paving way for the stafflevel agreement to unlock a USD 11 billion loan by the global lenderUAE authorities have confirmed to IMF for their bilateral support of USD 1 billion to Pakistan Dar said in a tweet adding that the State Bank of Pakistan SBP was now engaged for needful documentation for taking the said deposit from UAE authoritiesThe UAE rolled over its deposits of USD 2 billion in January this year too providing critical support to cashstarved Pakistans depleting foreign exchange reservesIn another tweet Dar announced that the apex bank is getting the third and last disbursement from the Industrial and Commercial Bank of China ICBC worth USD 300 million out of its USD 13 billion loanOut of Chinese banks ICBC approved facility of USD 13bn which was earlier repaid by Pakistan State Bank of Pakistan would receive back third and last disbursement today in its account amounting to USD 300mn the finance minister tweetedThe ICBC approved a rollover of a USD 13 billion loan for Pakistan on March 3 and made the first payment of USD 500 million on the same day while the second payment of the same amount was made on March 17Also readMumbai Builder arrested for not delivering flats after taking moneyThe IMF lowered its forecast for Pakistans economic growth rate days ago from 2 per cent to just 05 per cent for the current fiscal year amid high inflation and a growing unemployment rate in the cashstrapped countryThe new development brought debtstruck Pakistan closer to signing the stafflevel agreement with the IMF and getting access to multilateral loansPakistan is tethering on the verge of default with just over USD 4 billion in reserves as it grapples with high external debt and a weak local currency All its hopes are tied to the IMF reviving the USD 7 billion bailout programme and releasing a USD 11 billion tranche originally due to be disbursed in November last yearThe funds are part of a USD 65 billion bailout package the IMF approved in 2019 which analysts say is critical if Pakistan is to avoid defaulting on external debt obligationsThe IMF programme signed in 2019 will expire on June 30 2023 and under the set guidelines the programme cannot be extended beyond the deadlinePakistan and the IMF have been negotiating the programmes resumption for months but have yet to reach an agreementThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever