Cash-strapped Pakistan receives $500 million from Qatar

In what comes as a relief to cash-strapped Pakistan, Qatar has deposited the first tranche of US $500 million in the State Bank of Pakistan.

"US $500 million received from Qatar," the State Bank of Pakistan (SBP) confirmed to The Express Tribune on Saturday Doha had on June 24 announced that it has decided to invest US $3 billion in Pakistan which is grappling to overcome a severe financial crisis.

This was announced on Monday after a two-day visit of Qatar`s Emir Sheikh Tamim Bin Hamad Al Thani to Pakistan as the Imran Khan-led government continues to battle a ballooning balance-of-payment crisis.

"Upon the directives of HH the Amir Sheikh Tamim bin Hamad Al-Thani, HE Deputy Prime Minister and Minister of Foreign Affairs Sheikh Mohammed bin Abdulrahman Al-Thani announced new investments in the form of deposits and direct investments in the Islamic Republic of Pakistan worth a total of US $3 billion," the Qatar News Agency said.

With this new investment package, the size of the Qatari-Pakistani economic partnership will amount to US $9 billion, it said.

Taking to Twitter, Abdul Hafeez Sheikh, the Pakistan Prime Minister`s financial adviser, said, "Want to thank the Emir of Qatar HRH Sheikh Tamim Bin Hamad Al Thani for announcing US $3 Billion in #deposits and direct #investments for #Pakistan and for #Qatar`s affirmation to further develop relations between the two countries."

Qatar is the fourth country to provide a bailout package to Pakistan, after China, the UAE and Saudi Arabia.

China has given to Pakistan US $4.6 billion in the shape of deposits and commercial loans while Saudi Arabia has announced a bailout package worth US $3 billion in addition to US $3.2 billion oil facility on deferred payments.

The UAE has provided a bailout package of US $2 billion to Pakistan.

Last month, Islamabad had reached an agreement with the International Monetary Fund (IMF) for a bailout package of US $6 billion. 

The deal is expected to be approved by the IMF Executive Board on July 3.

Besides the assistance by the global finance body, Pakistan will receive additional funds worth nearly US $2-3 billion from institutions such as the Asian Development Bank and World Bank.