Pakistan will receive $2 billion from Qatar in bilateral support to help ease the South Asian nation’s funding crunch and the consequent risk of default.
The South Asian nation will also get $1 billion in oil financing from Saudi Arabia and a similar amount in investments from the UAE. All the funds are expected over twelve months, Murtaza Syed, acting governor at the State Bank of Pakistan said in a briefing.
Pakistan Prime Minister Shehbaz Sharif is visiting Qatar on Aug. 23 and 24. An announcement of the assistance may or may not be announced during the trip, Syed said.
The pledges come before an IMF board meeting on Aug. 29 that could lead to the release of $1.2 billion in financing. Arab nations had committed to supporting Pakistan only after it secured an IMF program, while the Washington-based lender has been seeking a commitment from Saudi Arabia.
The Pakistan rupee is the best performer globally this month and has gained 11% since dropping to a record low last month as worries over a possible default fade, according to data tracked by Bloomberg.
