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Pakistan World

UAE commits a $2 billion loan to Pakistan.

UAE commits a $2 billion loan to Pakistan.

According to a statement from the Prime Minister’s Office on Thursday, the United Arab Emirates (UAE) decided to roll over an existing loan of $2 billion and provide Pakistan with a new credit of $1 billion.

The declaration was made following a meeting in Abu Dhabi between Prime Minister Shehbaz Sharif and UAE President Sheikh Mohamed bin Zayed Al Nahyan. The goal of the premier’s two-day visit is to improve relations with the nation on the economic, trade, and investment fronts.

According to the statement from the PM Office, Sheikh Mohamed bin Zayed lauded the historical ties between the UAE and Pakistan as well as the important contributions made by Pakistanis who reside in the Middle Eastern nation.

“The two leaders reviewed the friendly relationships that already exist between Pakistan and the UAE and looked into ways to deepen them, particularly in the areas of business, investment, and energy. According to the statement, the two leaders also discussed regional and global problems of shared concern.

The two parties also decided to encourage partnerships, expand investment prospects, and strengthen their current investment cooperation. According to the PMO, PM Shehbaz sent an invitation to the UAE President to visit Pakistan, and Sheikh Mohamed bin Zayed Al Nahyan had accepted. The dates will be established through diplomatic channels.

The vice president and prime minister of the United Arab Emirates as well as the ruler of Dubai, Sheikh Mohammad bin Rashid Al Maktoum, will also meet with PM Shehbaz. According to the release, he will also meet with Emirati businesspeople and investors to discuss ways to improve bilateral commerce and investment.

Since taking office in April 2022, this is the premier’s third trip to the United Arab Emirates. In April of last year, PM Shehbaz made his first trip to the UAE, spending a day in Abu Dhabi. His second visit took place in May, when he stopped in the UAE on his way back from the UK to express his condolences for the passing of Sheikh Khalifa bin Zayed Al Nahyan, the country’s former president.

The visit by the prime minister follows one by General Asim Munir, the Chief of Army Staff (COAS), to a country in the Middle East. Early this week, the Emirati president was visited by COAS Munir at Qasr Al Shati Palace to discuss bilateral cooperation, according to UAE state news agency WAM.

The loan from the UAE was rolled over at a time when Pakistan is in serious financial trouble, with its foreign exchange reserves falling to an eight-year low of $5.576 billion in the week that concluded on December 30, 2022. This is equivalent to imports for three weeks. Later, according to media reports, the reserves decreased even more, to $4.5 billion, due to loan repayments to two UAE banks. Due to this decrease, the government was unable to repay its international debts without taking out new loans from allies.