Pakistan gets closer to IMF deal after UAE pledges $ 1 ban

Islamabad : The UAE has con firmed financial support of $ 1 billion to Pakistan , the South Asian nation’s finance minister said on Friday , removing a key hurdle to securing a much awaited bailout tranche from the IMF . The commitment is one of the IMF’s last require me nets before app roving a staff – 1 evil pact to release a tranche of $ 1.1 billion , delayed for months , that is crucial for Pakistan to resolve an acute balance of payments crisis .

” The State Bank of Pakis tan is now engaged for needful documentation for taking the said deposit from UAE author ties , ” finance minister Ishan Dar said , referring to the central bank . The pledge makes the UAE the third country , after Saudi Arabia and longtime ally China , to come to Pakistan’s assistance , as external financing is needed to fully fund the balance of payments gap for the fiscal year that ends in June .

” The UAE deal should be helpful because the IMF has been saying Pakistan should se cure financing from ‘ friendly ‘ nations , ” said Seaport Global EM credit analyst Himanshu Poral . ” … The IMF is saying that they ( Pakistan ) are in breach of certain targets . The fiscal deficit for example is seen peaking at around 8.3 % ( of GDP ) , so almost double what they were expecting , ” he added . The IMF programme will disburse another tranche of $ 1.4 billion to Pakistan before it concludes in June . Funds will also unlock other bilateral and multilateral financing for the cash – strapped country .

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