SBP, ADFD agreement: Second tranche of $2bn soon to be received by Pakistan

SBP, ADFD agreement: Second tranche of $2bn soon to be received by Pakistan

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KARACHI: The State Bank of Pakistan (SBP) on Saturday signed an agreement with Abu Dhabi Fund for Development (ADFD) for the placement of the second tranche of $2 billion.

Pakistan is set to receive $4.1 billion in financial assistance from friendly countries next week, according to Finance Minister Asad Umar.

The minister’s disclosure came at a seminar organised on Saturday by the Pakistan Business Council.

SBP is expected to receive the $2 billion deposit shortly. The central bank had received the first tranche of $1 billion from the Abu Dhabi Fund in January.

The remaining part of $2.1 billion would come from China, he added.

“The UAE is providing the loan at an interest rate of 3%, while the Chinese have offered us an interest rate of 2.5%,” Umar said .

The agreement for the placement of the second tranche of $2 billion by ADFD with the SBP has been signed. These funds are expected to be received shortly by SBP, a notification read.

In January, the SBP had signed an agreement with ADFD for $3 billion to be deposited in the SBP account.

Foreign Office has announced that the funds “will help Pakistan achieve financial stability and overcome economic challenges.”

Abu Dhabi released the first tranche of $1 billion in January 2019.

“The agreement for the placement of second tranche of $2 billion by the Abu Dhabi Fund for Development (ADFD) with the State Bank of Pakistan has been signed between the two sides – the SBP and ADFD,” the central bank reported.

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