Hina Javed Malik
Pakistan is expecting affirmation from the United Arab Emirates of a $1 billion financing ensure this week which would clear the way for an early consenting to its bailout arrangement with the International Monetary Fund (IMF).
The UAE authorities have already received a special request from Finance Minister Ishaq Dar to arrange the $1 billion guarantee for the cash-strapped South Asian economy.
At the World Bank Group and IMF spring meetings this week, the Finance Ministry secretary will discuss this with the lender.
The formalities for arranging $1 billion in external financing from the UAE have already been completed, according to Finance Ministry officials. After the UAE and Pakistani authorities confirm all technicalities, they added, the IMF will receive a written guarantee.
In order to meet the IMF’s requirements, the Prime Minister’s Office has specifically sought assistance from friendly nations.
The Pakistani government has been negotiating with the Washington-based lender since January to release $1.1 billion from its 2019-concluded $6.5 billion Extended Fund Facility (EFF). The agreement has been postponed by the IMF until all guarantees of additional funding from friendly nations are verified.
Saudi Arabia approved Pakistan’s request for $2 billion in funding last week.
