UAE provides much-needed economic relief to Pakistan
Sheikh Mohamed bin Zayed agrees to roll over existing loan of $2bn and provide an additional $1bn loan to Pakistan
January 12, 2023
- PM Shehbaz is in UAE on two-day official visit.
- Meets UAE President Sheikh Mohamed bin Zayed.
- PM to meet UAE leaders with an eye on strengthening economic ties.
UAE President Sheikh Mohamed bin Zayed Thursday agreed to roll over the existing loan of $2 billion and provide an additional $1 billion loan to Pakistan in a meeting with Prime Minister Shehbaz Sharif, Information Minister Marriyum Aurangzeb announced Thursday.
The much-needed relief was critical for cash-strapped Pakistan’s distressed economy as the ninth review of the International Monetary Fund (IMF) programme to clear the release of the next $1.1 billion tranche of funds has been pending since September.
Pakistan faces a severe economic crisis, with its central bank foreign exchange reserves likely to fall to a critical level of below $5 billion, which is barely enough for three weeks of imports.
The prime minister held talks with the UAE president in Abu Dhabi today with a particular focus on advancing economic, trade and investment ties between the two brotherly countries and creating increased opportunities for the Pakistani workforce in the UAE.
This is the third visit of PM Shehbaz to the UAE after assuming the office of prime minister in April.
“His Highness Sheikh Mohamed bin Zayed welcomed Prime Minister Sharif to Abu Dhabi and wished progress and prosperity for Pakistan,” Marriyum wrote on Twitter while sharing details of the meeting between them.
President Zayed praised the historical relations between the two nations and the valuable contributions made by the Pakistani community in the UAE.
The premier thanked the UAE president for inviting him to the brotherly country.
“The two leaders discussed the fraternal relations existing between Pakistan and the UAE; explored ways and means to further strengthen these ties, especially in the fields of trade, investment and energy.”
President Zayed also agreed to a state visit to Pakistan at Shehbaz Sharif’s invitation. The dates of the visit will be decided through diplomatic channels.
Pakistan faces a severe economic crisis with its central bank foreign reserves this week likely to fall to a critical level of below $5 billion, which is barely enough for three weeks of imports.
