Pakistan gets $4bn lifeline as economic woes mount.

ISLAMABAD -- Pakistan on ThursAday secured a lifeline of about $4 billion from the United Arab Emirates and Saudi Arabia to sail through the immediate challenge of a sovereign default amid rapidly shrinking foreign exchange reserves, massive flood damages and an overall economic slowdown.

Two separate official announcements said the UAE pledged to roll over $2bn debt payable over the next two months and topped this with an additional $1bn support during an ongoing visit of Prime Minister Shehbaz Sharif to the emirates.

Separately, the Saudi Fund for Development (SFD) signed an agreement in Islamabad to fund $1bn worth of oil imports on deferred payment.

The central bank's reserves dropped to a critical level of $4.34bn on Thursday, the lowest since February 2014 and barely enough to finance less than one month of controlled imports.

UAE approves $3bn financing; Saudi fund signs $1bn agreement for...