Qatar Sends First Tranche of $3 Billion Payment to Pakistan

(Bloomberg) -- Qatar is said to have sent the first tranche of $3 billion to Pakistan that will help boost its dwindling foreign-exchange reserves, according to people familiar with the matter.

The amount will be with Pakistan in the next few days, according to the people. The gas-rich nation pledged the amount in deposits and investments to Pakistan after Qatar's Emir Sheikh Tamim Bin Hamad Al Thani visited Islamabad this month.

The inflow follows Saudi Arabia and the United Arab Emirates sending $5 billion in aid packages. Pakistan also received $2.1 billion loan from China in March after Pakistan's Prime Minister Imran Khan approached friendly countries to help it avert a balance of payments crisis.

A State Bank of Pakistan official declined to comment on the inflow while the Qatar Central Bank didn't immediately respond to a request for comment.

Pakistan also reached an agreement with the International Monetary Fund in May for a bailout of about $6 billion as the economy goes through its latest boom and bust cycle.

Pakistan's foreign-exchange reserves have dropped by about 25% to $7.3 billion, less than two months of import cover, according to central bank data. The nation's currency is the worst performer globally this quarter declining 12%, according to data compiled by Bloomberg.

To contact the reporter on this story: Faseeh Mangi in Karachi at fmangi@bloomberg.net

To contact the editors responsible for this story: Arijit Ghosh at aghosh@bloomberg.net, James Ludden

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