Abu Dhabi — Mubasher: Abu Dhabi Fund for Development (ADFD) has set up plans to deposit $3 billion into Pakistan’s central bank in a bid to support the South Asian country’s cash-strapped government.

The financial support agreement was signed by ADFD director general Mohammed Saif Al Suwaidi and State Bank of Pakistan director general Tariq Bajwa in Abu Dhabi, Arabian Business reported.

Commenting on the deposit deal, Al Suwaidi said “the directive to deposit $3 billion with the State Bank of Pakistan aligns with the UAE leadership’s keenness to bolster Pakistan’s economy, help its government achieve financial stability, overcome economic challenges and drive comprehensive development in the country.”

To date, ADFD, the UAE's national entity for international development aid, has injected AED 1.5 billion ($408.3 million) into Pakistan’s development projects, including the sectors of transport, water, agriculture, healthcare and education.

The projects comprised an AED 227 million ($61.7 million) grant for the construction of the UAE-Pakistani Friendship Road in Waziristan, and AED 230 million ($62.6 million) for the construction of two hospitals, the Emirates Hospital and Sheikh Zayed Hospital.

Since 1981, ADFD’s efforts in Pakistan “have contributed to improving socio-economic conditions in the country, boosting strategic growth and achieving the development priorities of the Pakistani government,” Al Suwaidi added.

On Tuesday, Pakistani and Saudi officials said that the kingdom and its ally the UAE offered Pakistan more than $30 billion in loans and investments.

Saudi Crown Prince Mohammed bin Salman is set to visit Pakistan next February to sign off Riyadh’s deals.

The round would allow Pakistani Premier Imran Khan, who took office in July 2018, to delay the painful prospect of borrowing from the International Monetary Fund (IMF).