Facing global financial isolation over terror financing, Pakistan has finally found an ally in the East. If the reports from the news agency WAM are to be believed then, the United Arab Emirates is likely to deposit $3 billion in Pakistan’s central bank to support the state’s crumbling economy. The monetary aid will be given by the foreign aid agency called the Abu Dhabi Fund for Development (ADFD).
Over the years, the ADFD has financed 8 development projects in Pakistan with a total value of Dh1.5 billion, including Dh931 million in grants.
Earlier in June, Pakistan was placed on the grey list of the Financial Acti0n Task Force (FATF) for failing to act against terrorism. The decision was taken despise Pakistan submitting a comprehensive 26-point action plan to the FATF to choke the funding of militants groups, including Mumbai attack mastermind Hafiz Saeed-led JuD and its affiliates, to avoid being blacklisted by it.
The FATF is an inter-governmental body that combats money laundering, terrorist financing and other related threats to the integrity of the international financial system.
Right from the start of this year, Pakistan has been facing global financial isolation. In January this year, US decided to suspend its huge security assistance to Islamabad which forced the South Asian nation to turn towards China, which has often provided support to them.
However, the debt trap diplomacy of China is well known to the counties now and Islamabad can’t be this naive to ignore it.
As part of the debt trap policy, Bejing extends massive loans to crumbling economies in favour of lucrative access to national resources or market entry for cheap Chinese goods.