KARACHI, Pakistan 

Pakistan on Wednesday received $1 billion in financial assistance from the United Arab Emirates (UAE) in an attempt to prop up the South Asian nation's depleting foreign reserves and contain a mounting balance of payment crisis.

Pakistan’s Finance Minister Ishaq Dar, in a televised speech, said that the financial assistance – second in two days – will help "resolve" the country's foreign reserves problem.

On Tuesday, Pakistan received $2 billion from Saudi Arabia days after Islamabad and the International Monetary Fund (MF) struck a $3 billion standby agreement.

The fresh transfers from the two longtime allies, according to Dar, have dismissed the long-running speculations about Islamabad's default.

On June 30, Pakistan signed a nine-month IMF agreement under a standby arrangement for $3 billion.

The deal will help shore up the South Asian country's depleting foreign reserves and contain a mounting balance of payment crisis.

Earlier, the SBP signed a $3 billion agreement with the Saudi Fund for Development (SFD) for improving foreign exchange reserves.

The SFD had confirmed the rollover of a deposit worth $3 billion in September 2022 with a maturity date on Dec. 5, but Saudi Arabia extended the term on Dec. 2.