Pakistan Foreign Exchange Reserves witness sudden rise

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Pakistan Foreign Exchange Reserves witness sudden rise

ISLAMABAD - Pakistan Foreign Exchange Reserves have witnessed suddenly surge as State Bank of Pakistan has received $1 billion of the $3 billion loan from UAE.

Two days ago, the Pakistan and UAE signed an agreement for a $3 billion loan to Islamabad. The rate of return for the loan is 3%.

The agreement was signed by State Bank of Pakistan Governor Tariq Bajwa and the Abu Dhabi Development Fund chairperson.

The funds were to be transferred to Pakistan in three instalments. The first instalment has been transferred, taking Pakistan’s foreign reserves to $14 billion from the previous $13 billion.

In December, the UAE announced a $3 billion bailout package for Pakistan to overcome its balance of payment issue under the Abu Dhabi Fund for Development.