Prime Minister Shehbaz Sharif announced a significant fiscal relief for Pakistan on Tuesday, revealing that the United Arab Emirates (UAE) has agreed to roll over a $2 billion loan deposit. The announcement follows a productive meeting between the Pakistani Prime Minister and UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan.
During the meeting, PM Shehbaz shared that the UAE President had proposed extending the loan repayment due in January. The UAE leader took immediate action, issuing directives to extend the $2 billion loan, which will help stabilize Pakistan’s economy. This gesture reflects the UAE’s continued support for Pakistan’s financial stability.
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Pakistan has seen some positive macroeconomic developments in recent years, such as a significant increase in foreign exchange reserves from $2.7 billion to $11.7 billion. However, the country’s external public debt remains steady at $100 billion. PM Shehbaz also highlighted the UAE’s ongoing commitment to supporting Pakistan’s economic growth, with plans to explore investment opportunities in sectors like mining, minerals, and agriculture.
The meeting between the two leaders also delved into strengthening bilateral relations, regional stability, and addressing climate change. UAE’s renewed interest in Pakistan has led to a new momentum in economic collaboration, which is expected to bring further investment and cooperation between the nations.
