The government-owned Abu Dhabi Fund for Development (ADFD) has formalised plans to deposit $3 billion into the State Bank of Pakistan to support the country’s economic growth, it announced on Tuesday.

The agreement was signed by ADFD director general Mohammed Saif Al Suwaidi and State Bank of Pakistan director general Tariq Bajwa in Abu Dhabi.

“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,” Al Suwaidi said.

Al Suwaidi added that since 1981 the fund’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.”

To date, ADFD has provided AED 1.5 billion ($408.3 million) to fund development projects in sectors including transport, water, agriculture, healthcare and education.

Among the projects have been a 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.

Additionally, the ADFG pledged AED 46 million ($12.5 million) for training colleges as well as AED 66 million ($17.9 million) to rehabilitate the Tarbela Dam.