Pakistan has received $1 billion of the $3 billion loan promised to the country by the UAE, the Ministry of Finance said on Tuesday.
Pakistan had already received a $1 billion installment from the UAE in January, 2019.
In a statement, a spokesperson of the finance ministry said the loan will help the government improve the country’s balance of payment position.
The aid by the UAE government shows that the international community has confidence in the government’s policies, the spokesperson said.
In January, Pakistan and UAE signed an agreement for a $3 billion loan to Islamabad. The rate of return for the loan is 3%. The funds were to be transferred to Pakistan in three installments.
In December, 2018, the UAE announced a $3 billion bailout package for Pakistan to overcome its balance of payment issue under the Abu Dhabi Fund for Development.