The United Arab Emirates (UAE) — a time-tested friend of Pakistan — once again came to rescue the cash-strapped nation amid a difficult time as it assured the International Monetary Fund (IMF) mission on the country’s external financing gap.
According to Geo News, the development came during a meeting between the IMF mission chief and the UAE ambassador in Pakistan on Tuesday, on the sideline of the ongoing policy-level talks between the international lender and Islamabad in connection with the first review of the $3 billion standby arrangement (SBA).
The IMF delegation met the UAE envoy to confirm the availability of external financing to Pakistan.
Matters related to Pakistan’s external financing gap worth $6.5 billion and other issues were discussed in the meeting, revealed well-placed sources.
During the meeting, the UAE envoy assured the IMF officials that his country would play a role in Pakistan’s economic stability.
Amid the ongoing policy-level talks, the global lender agreed to keep the annual tax target unchanged at Rs9.415 trillion. The caretakers have informed IMF that they would not impose any new tax, the sources said.
They further said that the caretakers have decided to approach Saudi Arabia, the UAE and other friendly countries as the cash-strapped nation was facing a huge financing gap amounting to $6.5 billion.
The country is likely to seek help from the Islamic Development Bank, Asian Development Bank and the World Bank.
