Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) has agreed to renew a $2 billion loan deposit, offering significant fiscal relief to Pakistan.
Chairing a cabinet meeting, the prime minister shared details of his recent meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, which took place in Rahim Yar Khan.
Prime Minister Shehbaz stated that the UAE leader proposed extending the repayment of the $2 billion loan due in January, a gesture aimed at supporting Pakistan’s economic stability.
“He [UAE president] He happily informed me that the United Arab Emirates was going to extend the $2 billion that Pakistan owed in January. He himself proposed it and immediately issued directives,” said Chief Minister Shehbaz.
This loan extension comes at a time when Pakistan has experienced positive macroeconomic developments over the past two years, including a significant increase in foreign exchange reserves, which have increased from $2.7 billion to $11.7 billion. Despite this, the country’s external public debt remains unchanged at $100 billion.
In addition to the renewal of the loan, Prime Minister Shehbaz Sharif revealed that the UAE President reaffirmed his country’s support for Pakistan’s efforts towards economic stability, highlighting the historic ties of brotherhood between the two nations.
Prime Minister Shehbaz also described his conversation with the UAE President as “positive and productive”, noting that the talks included exploring investment opportunities and strategies to strengthen mutual relations.
On Sunday, UAE President Sheikh Mohamed bin Zayed Al Nahyan expressed keen interest in collaborating with Pakistan in the mining, minerals and agriculture sectors.
The UAE President noted that this renewed economic momentum had created opportunities to enhance bilateral investment and cooperation, according to a statement from the Prime Minister’s Office.
Al Nahyan was received at Rahim Yar Khan airport by Prime Minister Shehbaz, Punjab Chief Minister Maryam Nawaz, Defense Minister Khawaja Asif, Information Minister Attaullah Tarar and other officials.
During the meeting, they discussed a wide range of topics, including economic collaboration, regional stability, climate change and promoting mutual interests on the global stage. They committed to deepening their economic, political and cultural ties.
