Finance Minister Ishaq Dar: UAE Deposits $1 Billion in State Bank of Pakistan

In a significant development, Finance Minister Ishaq Dar announced that the United Arab Emirates (UAE) has deposited an amount of $1 billion in the State Bank of Pakistan (SBP). This generous inflow of funds has further increased the forex reserves held by the central bank, positively impacting the country’s economy. The finance minister expressed his gratitude to the leadership of the UAE for their support and emphasized the importance of this deposit in stabilizing Pakistan’s economy. This article explores the implications of the deposit and sheds light on the efforts to strengthen the country’s financial position.

Increased Forex Reserves and Economic Stability

The deposit of $1 billion by the UAE into the State Bank of Pakistan is a significant boost to the country’s forex reserves. This infusion of funds will be reflected in the forex reserves position for the week ending July 14, 2023. It is expected that the overall liquid foreign currency reserves, including net reserves held by banks other than the SBP, will reach the level of $14 to $15 billion in the coming weeks. Such a substantial increase in reserves provides a cushion against economic volatility and helps maintain stability.

Gratitude and Acknowledgment

Finance Minister Ishaq Dar, on behalf of Prime Minister Shehbaz Sharif, Chief of Army Staff (COAS) General Asim Munir, himself, and the people of Pakistan, extended heartfelt thanks to the leadership of the United Arab Emirates for their remarkable gesture of support. The deposit of $1 billion with the State Bank of Pakistan demonstrates the UAE’s unwavering friendship and commitment to Pakistan’s progress. Prime Minister Shehbaz Sharif also expressed his gratitude to H.H. Mohamed Bin Zayed, President of the UAE, through a tweet, emphasizing the UAE’s consistent support for Pakistan.

Inflow of External Financing

It is worth mentioning that this deposit from the UAE follows the recent deposit of $2 billion from the Kingdom of Saudi Arabia (KSA) into the State Bank of Pakistan’s account. This influx of external financing has bolstered Pakistan’s financial position significantly. The combined deposits from Saudi Arabia and the UAE amount to $3 billion in the last 48 hours. This injection of funds provides the country with much-needed resources to address economic challenges and facilitate sustainable growth.