PM Shehbaz thanks UAE president for 'investment' country will make in Pakistan

 

• PM says both “brotherly countries are very keen to further strengthen their multifaceted relationship”.
• PM Shehbaz Sharif announces UAE's plans to invest in Pakistan without mentioning details of said “investment”.
• Reportedly, UAE has stated its intention to invest $1 billion in Pakistani enterprises.

ISLAMABAD: Prime Minister Shehbaz Sharif announced on Sunday that United Arab Emirates President Sheikh Mohammed Bin Zayed Al-Nahyan has agreed to invest in the country in various sectors.

“Grateful to my brother His Highness Sheikh Mohammed Bin Zayed Al-Nahyan for the investment that the UAE is going to make in various sectors of Pakistan,” tweeted PM Shehbaz Sharif.

The premier shared that both the “brotherly countries are very keen to further strengthen their multifaceted relationship”.

The PM did not mention any details of the “investment” being made by UAE but a report published in The News stated that Abu Dhabi has stated its intention to invest $1 billion in Pakistani enterprises in a variety of economic and investment areas as the country navigates a tough economic situation.

The move, according to the state-owned Emirati news agency, is intended at exploring new investment opportunities and areas for collaboration in projects across multiple industries to expand bilateral economic relations in the best interests of the two countries.

It also emphasises the UAE and Pakistan's desire to continue working together in areas such as gas, energy infrastructure, renewable energy, health care, biotechnology, agricultural technologies, logistics, digital communications, e-commerce, and financial services.

Financing gap

Pakistani officials are eagerly awaiting bridging finance of $4 billion from friendly countries to meet the demands of the International Monetary Fund (IMF) demands. Pakistan's powerful quarters have approached US officials, as well as officials from the Kingdom of Saudi Arabia and the United Arab Emirates, to get the necessary financial backing for the revival of the delayed IMF programme.

According to one top official, Pakistan expects to receive support from friendly countries before Ashura, so that the IMF's Executive Board can approve Pakistan's enlarged $7 billion EFF revival programme by August 24, 2022.

Pakistan and the IMF now need confirmation from KSA for financial support on account of deferred payment of oil facility and conversion of SDRs for Pakistan, following which the finance minister and the SBP governor will sign the Letter of Intent (LOI).

It will subsequently be sent to the Fund's executive board for approval of the combined seventh and eighth reviews and the disbursement of the $1.17 billion tranche under the Extended Fund Facility (EFF).