Pakistan receives second UAE installment of $1b

AFP photo

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.

Related story: Pakistan receives first UAE installment of $1 billion

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.

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