Pakistan and the United Arab Emirates on Tuesday signed a USD 3 billion bailout package, as part of Abu Dhabi’s support to boost the cash-strapped country’s dwindling dollar reserves.

The UAE in December last year had announced to provide USD 3 billion financial assistance to Pakistan after Saudi Arabia made a similar commitment to help Islamabad successfully overcome international payment crisis and to avoid a stringent International Monetary Fund deal.

He said the agreement will help Pakistan achieve financial stability and overcome economic challenges and noted ADFD’s support over the years to stimulate Pakistan’s economic growth and sustainable development.

Speaking on the occasion, Suwaidi said, “The directive to deposit USD 3 billion with the State Bank of Pakistan aligns with the UAE leadership’s keenness to bolster Pakistan’s economy, help its government achieve financial stability and overcome economic challenges, and drive comprehensive development in the country.”

He added, “ADFD and the Government of Pakistan have enjoyed strong and long-standing ties dating back to 1981. The Fund’s efforts have significantly contributed to improving socio-economic conditions in the country, boosting strategic growth and achieving the development priorities of the Pakistani government.”

The UAE had committed the financial assistance during Prime Minister Imran Khan’s visit to Qatar last month to seek investment and provision of LNG on deferred payments. Pakistan has a 15-year contract with Qatar for supply of LNG.