The United Arab Emirates has announced its intention to deposit US$3 billion (equivalent to AED11 billion) in the State Bank of Pakistan "to support the financial and monetary policy of the country", reported WAM, the official news agency of the Emirates.

The Abu Dhabi Fund for Development said, in a statement today, that it will deposit the said amount in the coming days to enhance liquidity and monetary reserves of foreign currency at the bank.

The country's support for Pakistan's fiscal policy is based on the historical ties between the two people, said WAM, and the two friendly countries and the desire to further develop the bilateral cooperation in all fields.

Read: Pak, UAE agree to forge ‘strategic economic’ ties

Following the announcement, Prime Minister Imran Khan took to Twitter to thank the UAE government for "supporting Pakistan so generously in our testing times".

"This reflects our commitment and friendship that has remained steadfast over the years," said the prime minister.

The Abu Dhabi Fund for Development has financed eight development projects in Pakistan with a total value of AED1.5 billion, including AED931 million in grants, added WAM. The funds covered projects in sectors such as energy, health, education and roads.

Pak-UAE ties

The PTI-led government, which completed its 100 days in power on November 26, counted "resetting relations with key partners including Saudi Arabia and the UAE" among its accomplishments in its performance report.

Since assuming office in August, the premier has visited the UAE twice.

The first visit took place in September when Khan visited Saudi Arabia and then the UAE. He was received by Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed bin Sultan Al Nahyan and the two countries had agreed to strengthen economic, trade and investment relations.

The next month, a UAE delegation — comprising CEOs/senior officials of major companies including Mubadala Petroleum, ADIA (Sovereign Wealth Funds), Etisalat, DP World, Dubai Investment Authority, Emaar Properties, Aldahra Agriculture and Abu Dhabi Fund for Development — arrived in Pakistan.

According to Foreign Minister Shah Mahmood Qureshi, the one-day visit of the delegation — headed by Dr Sultan Aljaber, minister of state and CEO of Abu Dhabi National Oil Company — was a follow-up to the prime minister’s maiden visit to Abu Dhabi.

In November, the premier embarked on his second trip to the UAE amid reports that the gulf state was ready to extend financial assistance to Pakistan. Khan was received by the Abu Dhabi crown prince in the UAE capital and was accorded a reception at the presidential palace, which was followed by delegation-level talks.

He was accompanied by a high-level delegation comprising Foreign Minister Qureshi, Finance Minister Asad Umar, Petroleum Minister Ghulam Sarwar Khan, Power Minister Omar Ayub Khan, PM’s Adviser on Commerce Abdul Razak Dawood, PM’s Adviser on Accountability Shahzad Akbar and Chief of the Army Staff Gen Qamar Javed Bajwa, among others.

During his day-long trip, the prime minister had also met Sheikh Muhammad bin Rashid Al Maktoum, the vice president and prime minister of the UAE and ruler of Dubai.