The United Arab Emirates (UAE) government on Thursday transferred a tranche of US$1 billion to State Bank of Pakistan's (SBP) account, Radio Pakistan reported.

According to a statement issued by SBP, the "amount was received under an agreement signed on Tuesday, January 22, 2019, by SBP Governor Tariq Bajwa and the director general of Abu Dhabi Fund for Development".

It is the first tranche of the $3 billion announced for improving Pakistan’s foreign currency reserves following Prime Minister Imran Khan's visit.

Last month, the UAE had 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".

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

Previously, 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.