UAE finalizes $6.2bn financial package for Pakistan

ISLAMABAD: The United Arab Emirates (UAE) finalized a financial package of $6.2 billion for Pakistan, ARY News reported.

Sources relayed that the UAE package comprises of $3.2bn worth of oil supplies on deferred payment and a $3bn cash deposit.

The package is expected to be announced by UAE Crown Prince Sheikh Mohammed bin Zayed Al Nahyan during his scheduled visit of Pakistan which on January 6.

According to an official familiar with the matter, the UAE package will be under the same terms and conditions as given by the Kingdom of Saudi Arabia. “It was finalised this week.”

The deferred payment facility will help Pakistan save around $6.4 billion on oil and gas imports from the two countries.

Furnishing reports indicate that the government also began back channel talks with Qatar seeking relief Liquefied Natural Gas (LNG) prices.

Pakistan has already received $2bn in cash from Saudi Arabia and the third installment of $1bn is due in the first week of February.

It is pertinent to mention here that the Chinese foreign ministry had recently acknowledged a foreign media news report pertaining to extending a financial package to support Pakistan’s foreign exchange reserves.

Lu Kang, the Chinese foreign ministry spokesman, in his daily media briefing in Beijing said, “The Chinese side has offered and will continue to offer its best through assistance, trade, investment and all-around practical cooperation to support and boost Pakistan’s economic and social development.”

He was responding to a question about a Financial Times report, which stated that China had pledged to lend at least $2bn to Pakistan to shore up its foreign exchange reserves and prevent further devaluation of the rupee against the dollar.