Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) has agreed to roll over a $2 billion loan deposit, offering significant fiscal relief to Pakistan. This development came after a productive meeting between PM Shehbaz and UAE President Sheikh Mohamed bin Zayed Al Nahyan, held in Rahim Yar Khan.
During a cabinet meeting, PM Shehbaz shared details of the discussion, stating that the UAE leader proposed extending the $2 billion loan repayment, originally due in January, as a gesture of support for Pakistan’s economic stability. “He [UAE president] happily informed me that the $2 billion owed by Pakistan in January was being extended by the UAE,” said Prime Minister Shehbaz, highlighting the positive outcome.
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This extension is crucial for Pakistan, which has seen improvements in its macroeconomic outlook, including an increase in foreign exchange reserves from $2.7 billion to $11.7 billion. However, the country’s external public debt remains substantial at $100 billion. The loan rollover, along with the UAE’s ongoing support, will help Pakistan manage its fiscal challenges.
In addition to the loan extension, PM Shehbaz revealed that UAE President Al Nahyan reaffirmed his commitment to strengthening economic ties with Pakistan. The leaders discussed investment opportunities in sectors like mining, minerals, and agriculture, exploring ways to deepen bilateral cooperation.
The meeting also covered a broad range of topics, including regional stability, climate change, and global collaboration, underscoring the strong brotherly ties between Pakistan and the UAE. The talks have set the stage for enhanced cooperation between the two nations in the coming years.
