ISLAMABAD: In a major development, the United Arab Emirates (UAE) is likely to provide written assurance to Pakistan for external financing of $1 billion during the ongoing week, the sources privy to the development said on Wednesday. Â
The UAE’s assurance would help Pakistan secure IMF deal.
Pakistan and the IMF had been holding talks for the release of $1.1 billion from a $ 6.5 billion bailout package they had agreed upon in 2019.
The IMF, however, had asked Pakistan to provide written guarantee from friendly countries for the deposit to unlock the stalled loan programme.
The sources said that Finance Minister Ishaq Dar had asked the UAE authorities to provide written assurance so that they could meet the IMF’s demand.
State Bank of Pakistan Governor, the Secretary of Finance and other officials are in Washington where they will brief the international lender about the latest development.
Last week, Saudi Arabia informed the IMF That it was going to provide $2 billion to Pakistan. The IMF confirmed the development.
The Saudi authorities are likely to make a public announcement, possibly during the next visit of Prime Minister Shehbaz Sharif to the kingdom.
Pakistan had been struggling for last couple of months to reach deal with the IMF for revival of the stalled programme but the deal was yet to be finalized.
