Pakistani Finance Minister Ishaq Dar stated on Friday that "the UAE has confirmed to the International Monetary Fund that it will provide $1 billion in support to Islamabad." He added, "The State Bank of Pakistan is currently working on the necessary documentation to obtain the mentioned deposit from the UAE authorities." Dar pointed out that Pakistan has provided details of the plan to the IMF, which inquired about how the necessary resources will be secured.
The Managing Director of the International Monetary Fund, Kristalina Georgieva, remarked the previous day: "The IMF is also in discussions with friendly countries of Pakistan to provide financial guarantees so that it can complete the program." She expressed optimism that the current IMF program with Pakistan would be successfully completed.
The country's foreign exchange reserves now cover less than a month of imports, as it awaits a $1.1 billion bailout package from the IMF. This package has been delayed since November due to issues related to financial policy reforms. The IMF states it requires guarantees that the balance of payments deficit will be fully financed for the fiscal year ending in June.
