Prime Minister Shehbaz Sharif confirmed on Tuesday that the United Arab Emirates (UAE) has agreed to extend a $2 billion loan deposit, providing much-needed financial relief to Pakistan.
At a cabinet meeting, the Prime Minister shared details of his recent discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan, which took place in Rahim Yar Khan. PM Shehbaz revealed that the UAE leader had proposed extending the repayment deadline for the $2 billion loan due in January. This move is aimed at helping stabilize Pakistan’s economy.
“He [the UAE President] informed me with pleasure that the $2 billion owed by Pakistan in January would be extended. He suggested this himself and immediately gave the necessary instructions,” said Prime Minister Shehbaz.
This loan extension comes after a period of positive economic developments in Pakistan, including a significant rise in foreign exchange reserves from $2.7 billion to $11.7 billion over the last two years. However, the country’s external public debt remains at $100 billion.
Along with the loan rollover, PM Shehbaz noted that the UAE President reiterated his country’s commitment to supporting Pakistan’s economic stability, emphasizing the longstanding ties between the two nations.
The Prime Minister also described his conversation with the UAE leader as “productive and positive,” adding that they had discussed potential investment opportunities and strategies to enhance bilateral relations.
On Sunday, UAE President Sheikh Mohamed bin Zayed expressed a strong interest in increasing cooperation with Pakistan in the mining, minerals, and agriculture sectors. He also mentioned that the recent economic momentum in Pakistan has opened up new opportunities for collaboration.
UAE President Al Nahyan was warmly received at Rahim Yar Khan airport by Prime Minister Shehbaz Sharif, Punjab Chief Minister Maryam Nawaz, Defence Minister Khawaja Asif, Information Minister Attaullah Tarar, and other officials.
The leaders engaged in extensive talks, covering economic cooperation, regional stability, climate change, and the strengthening of mutual interests globally. Both sides committed to enhancing their economic, political, and cultural relationships.
