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 talked about the friendly relationships between Pakistan and the UAE and looked into ways to make them even closer, particularly in the areas of business, investment, and energy. The two leaders also discussed matters of common interest on the regional and global levels, according to the statement.
According to the statement, the two parties also decided to foster relationships and provide chances for investment integration. According to the PMO, PM Shehbaz invited Sheikh Mohamed bin Zayed Al Nahyan to visit Pakistan, and Sheikh Al Nahyan accepted. The dates would be decided 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 journey 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.
This decline left no space for the government to pay back its foreign debts without borrowing more from friendly countries.
