UAE likely to provide written guarantee for $1bn financing this week

April 12, 2023 (MLN): The United Arab Emirates (UAE) is likely to provide a written guarantee for $1 billion in financing this week as the matters have been finalized for the financing, according to well-informed sources.

The Secretary of the Ministry of Finance will inform the IMF during the annual meetings in Washington, the sources said. 

Cash-strapped Pakistan is in dire need of funding therefore, Finance Minister Ishaq Dar made a special request to the UAE authorities, Finance Ministry sources said.

The finance minister requested friendly countries for timely support to unlock the IMF deal. 

 As soon as the guarantee is received from the UAE authorities, the IMF will also receive a written guarantee.

The sources further informed that a request was made from the Prime Minister's Office to the friendly countries to fulfill the conditions of the IMF.

To release the next tranche of loans to the crisis-hit country, the IMF has laid forth key demands, which include assurances from friendly nations.

The IMF requires friendly nations to fulfill their pledges to fund Pakistan before finalizing the $6.5 billion bailout program which led to a delay in talks between Pakistan and the IMF to resume the program.

However, with this positive news from the UAE side, Pakistan became one step closer to the much-needed funds. 

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