Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) has agreed to roll over a $2 billion loan deposit, providing a significant boost to Pakistan's fiscal position. The announcement was made during a cabinet meeting where the premier elaborated on his recent discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan.
Key Agreement for Economic Stability
PM Shehbaz shared that the UAE leader personally proposed extending the repayment period for the $2 billion loan, initially due in January 2025. "He [UAE President] happily informed me that the $2 billion owed by Pakistan in January was being extended by the UAE. He proposed it himself and immediately issued directives," the prime minister stated, expressing gratitude for the gesture.
This loan extension comes at a critical time for Pakistan. Despite recent improvements in macroeconomic indicators, such as foreign exchange reserves rising from $2.7 billion to $11.7 billion over two years, the country still grapples with an external public debt of $100 billion.
Reaffirming Bilateral Support
Beyond the loan rollover, the UAE President reiterated his nation's unwavering support for Pakistan's economic recovery efforts. The two leaders also discussed potential investments, with Sheikh Mohamed bin Zayed expressing keen interest in collaborating with Pakistan in sectors like mining, minerals, and agriculture.
"The discussions were not only positive but also productive," PM Shehbaz noted, adding that both sides explored strategies to deepen their historic ties and strengthen economic cooperation.
A High-Level Meeting in Rahim Yar Khan
The UAE President's visit to Rahim Yar Khan underscored the importance of the relationship between the two nations. Sheikh Mohamed bin Zayed was warmly received by Prime Minister Shehbaz Sharif, Punjab Chief Minister Maryam Nawaz, and other key officials, including Defence Minister Khawaja Asif and Information Minister Attaullah Tarar.
During their meeting, a wide array of topics was addressed, including economic collaboration, regional stability, climate change, and global mutual interests. Both leaders reaffirmed their commitment to deepening political, cultural, and economic ties.
The UAE’s renewed support and interest in Pakistan signal opportunities for enhanced bilateral cooperation and investment, providing a much-needed impetus for the country's economic growth.
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