Pakistan Receives $1 Billion
Pakistan has received a significant boost to its economy as the United Arab Emirates (UAE) deposited $1 billion in the State Bank of Pakistan (SBP). This announcement was made by Finance Minister Ishaq Dar, who expressed his gratitude on behalf of the Prime Minister, Chief of Army Staff, himself, and the people of Pakistan. The deposit made by the UAE will contribute to the increase in the country’s foreign exchange reserves held by the central bank, positively impacting the forex reserves position for the week ending July 14, 2023.
Strengthening Forex Reserves
The infusion of $1 billion into the State Bank of Pakistan marks a substantial addition to the country’s foreign currency reserves. Finance Minister Ishaq Dar highlighted that this deposit will contribute to the overall liquid foreign currency reserves held by Pakistan, including the net reserves held by banks other than the SBP. As a result, it is anticipated that the country’s foreign currency reserves will reach a level of $14 to $15 billion in the coming weeks. This injection of funds from the UAE will play a vital role in stabilizing Pakistan’s economy and ensuring its continued growth.
Gratitude to the United Arab Emirates
Prime Minister Shehbaz Sharif took to Twitter to express his gratitude to the President of the UAE, H.H. Mohamed Bin Zayed, for the generous deposit of $1 billion. In his tweet, Prime Minister Shehbaz Sharif emphasized the longstanding friendship and brotherly bond between the UAE and Pakistan, highlighting the UAE’s consistent support for Pakistan in times of need. The prime minister acknowledged the UAE’s kind gesture and considered it critical to the ongoing efforts to stabilize the economy. This financial assistance will undoubtedly contribute to strengthening Pakistan’s economic position and fostering its development.
In a Tweet, Prime Minister Shehbaz Sharif thanked the UAE President for the $1 billion deposit.
“Grateful to my dear brother, H.H. Mohamed Bin Zayed, President of the UAE, for the deposit of $1 billion with the State Bank of Pakistan. As a time-tested friend & brotherly country, the UAE has always come forward to support Pakistan. We deeply acknowledge this kind gesture &…” — Shehbaz Sharif
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Strong Partnerships with Saudi Arabia and UAE
It is worth mentioning that in addition to the $1 billion deposit from the UAE, Pakistan recently received a substantial financial boost from the Kingdom of Saudi Arabia (KSA) as well. On Tuesday, KSA deposited $2 billion into the State Bank of Pakistan’s account, further enhancing the country’s external financing. With the recent inflow of $3 billion in the last 48 hours from Saudi Arabia and the UAE, Pakistan has demonstrated its ability to forge strong partnerships and attract significant foreign investments.
Conclusion
The deposit of $1 billion from the United Arab Emirates into the State Bank of Pakistan is a testament to the close ties between the two nations. The generosity of the UAE and its commitment to supporting Pakistan’s economic stability and growth are highly commendable. This financial boost will bolster Pakistan’s foreign exchange reserves and contribute to the overall development and prosperity of the country.
