As Pakistan navigates a challenging economic environment, the UAE has announced its intention to invest $1 billion in Pakistani firms across a range of economic and investment areas.
The move, according to the state-owned Emirati news agency, aims to expand bilateral economic relations in the best interests of the two countries by looking into new investment opportunities and areas for collaboration in projects across various industries.
Additionally, it highlights the UAE’s and Pakistan’s desire to keep cooperating in fields like gas, energy infrastructure, renewable energy, healthcare, biotechnology, agricultural technologies, logistics, digital communications, e-commerce, and financial services.
Financing gap
Pakistani officials are eagerly awaiting $4 billion in bridging financing from friendly nations to satisfy IMF requirements. Powerful groups in Pakistan have contacted US officials as well as those from the Kingdom of Saudi Arabia and the United Arab Emirates in an effort to provide the funding required for the restart of the delayed IMF programme.
One senior official claims that Pakistan anticipates assistance from friendly nations before Ashura, enabling the IMF Executive Board to approve the country’s expanded $7 billion EFF restoration program by August 24, 2022.
In order for Pakistan and the IMF to sign the Letter of Intent, KSA must now declare that it will provide financial support due to Pakistan’s delayed payment of an oil facility and conversion of SDRs (LOI).
The combined seventh and eighth reviews as well as the release of the $1.17 billion tranche under the Extended Fund Facility(EFF) will thereafter be referred to the Fund’s executive board for approval .
