ISLAMABAD – The $3 billion committed to being parked in the central bankby the United Arab Emirates will be parked in the State Bank of Pakistan(SBP).
It will have an interest rate of 2.18%, said sources.
Moreover, sources stated the financial package from the UAE is expected tocontain cheaper loans and budget support as part of the economic aid.
It is expected that oil will be provided on deferred payment facilitiesworth $3 billion for a three-year duration which is equivalent to $250million a month.
It announced its intention to deposit $3 billion (equivalent to AED11billion) in the State Bank of Pakistan (SBP) “to support the financial andmonetary policy of the country”, reported *WAM,* the official news agencyof the Emirates.
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The Abu Dhabi Fund for Development said in a statement that it will depositthe amount in the coming days to enhance liquidity and monetary reserves offoreign currency at the bank.
The country’s support for Pakistan’s fiscal policy is based on thehistorical ties between the two people, said WAM, and the two friendlycountries and the desire to further develop the bilateral cooperation inall fields.
According to sources at the finance ministry, the $3 billion, Pakistanexpected to get from UAE, was a loan.
