Pakistan gets $1 billion boost from UAE ahead of key IMF decision

Pakistan's state bank coffers were further boosted on Wednesday by a $1 billion deposit from the United Arab Emirates, officials said, ahead of a key International Monetary Fund (IMF) board meeting to approve new funding.

The UAE has deposited $1 billion with Pakistan's central bank to support foreign exchange reserves, Finance Minister Ishaq Dar said.  Dar said the UAE deposit would be reflected on the books by Friday.

The deposit comes a day after Saudi Arabia transferred $2 billion to Islamabad, and brings the state's foreign reserves to $7.5 billion — more than double last week's account balance.

The economy has been stricken by a balance-of-payments crisis as it attempts to service crippling external debt, while months of political chaos have scared off foreign investment.

Securing financial support from friendly nations has been a key condition of the IMF for approving a new standby deal for Pakistan worth $3 billion.

The package will be considered for approval by the IMF's executive board meeting in Washington this week.

"As a time-tested friend & brotherly country, the UAE has always come forward to support Pakistan," Prime Minister Shahbaz Sharif tweeted late on Wednesday.

"We deeply acknowledge this kind gesture & consider it critical to our efforts to stabilise the economy."

Reuters