UAE to loan $1bln, roll over another $2bln to Pakistan

UAE to loan $1bln, roll over another $2bln to Pakistan

The United Arab Emirates agreed on Thursday to lend $1 billion to Pakistan and roll over an existing $2 billion loan, Pakistan's information minister said, offering some respite to a nation still reeling from devastating floods.

Pakistan says it suffered more than $30 billion of damage as floodwaters swept across the country from July-August.

The loan announcements came as Pakistan's prime minister, Shehbaz Sharif, kicked off a two-day visit to the United Arab Emirates.

He met UAE President Sheikh Mohammed bin Zayed al-Nahyan, and was due to discuss business and economic opportunities with other officials and business leaders, information minister Marriyum Aurangzeb said.

"We share a resolve and understanding that the continuous efforts need to be made to further strengthen trade, investment and economic relations," Sharif said in a statement from his office.

As a ninth review by International Monetary Fund (IMF) to clear the release of the next $1.1 billion tranche of funds to Pakistan has been pending since September, the external financing is crucial for the country's broken economy.

Pakistan's central bank foreign reserves fell to a critical level of $5.5 billion in the week ending Dec. 30, barely enough for three weeks of imports.

The IMF and Pakistan signed a $6 billion bailout in