Neighboring Pakistan hopes to breathe easy with the United Arab Emirates (UAE) planning to deposit $3 billion in Pakistan’s central bank.
The proposal is to materialize over the next few days, as per the UAE state news agency.
Pakistan also hopes that it will allow deferred payments for oil supplies.
Pakistan is battling to bring under control a gaping current account deficit that’s wobbled its economy and has lowered growth.
Islamabad is engaged in bailout talks with the International Monetary Fund (IMF) but has also sought financial help from allies China and Saudi Arabia.
The UAE deposit is aimed at supporting Pakistan’s monetary policy, WAM said, citing the state-run Abu Dhabi Fund for Development.
Chaudhry declined to disclose the sum of assistance sought through deferred payments but said this was part of the discussions that led to the UAE announcing it would deposit $3 billion with Pakistan’s central bank.>