The United Arab Emirates (UAE) has confirmed the repayment of a $2 billion loan to Pakistan, providing a significant boost to the country’s financial stability. Prime Minister Shehbaz Sharif revealed this news during a recent cabinet meeting, following his meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan.
Loan Repayment Extension
During the meeting, PM Shehbaz announced that the UAE president had proposed extending the repayment of the $2 billion loan, which was originally due in January. This gesture from the UAE aims to support Pakistan’s ongoing efforts towards economic stability. Prime Minister Shehbaz expressed gratitude for the UAE president’s decision, highlighting the importance of this loan rollover for Pakistan’s financial well-being.
Positive Macroeconomic Developments
The loan extension comes at a time when Pakistan has experienced positive macroeconomic developments, with foreign exchange reserves increasing significantly from $2.7 billion to $11.7 billion over the past two years. Despite these improvements, the country’s external public debt remains high at $100 billion. The loan rollover from the UAE is expected to provide much-needed relief to Pakistan’s financial obligations.
Support for Economic Stability
In addition to the loan repayment confirmation, PM Shehbaz Sharif highlighted the UAE President’s reaffirmation of his country’s support for Pakistan’s economic stability efforts. The historic brotherly ties between the two nations were emphasized during the discussions, indicating a strong commitment to mutual cooperation and support.
Exploring Investment Opportunities
The meeting between the UAE president and Prime Minister Shehbaz also included discussions on investment opportunities and strategies to strengthen bilateral relations. The UAE President expressed interest in collaborating with Pakistan in various sectors, including mining, minerals, and agriculture, opening up avenues for enhanced cooperation and investment between the two countries.
Overall, the loan repayment confirmation from the UAE and the ongoing discussions between the two nations reflect a positive outlook for Pakistan’s economic stability and growth. The support from the UAE is expected to contribute significantly to Pakistan’s financial well-being, providing a solid foundation for continued economic development and cooperation between the two countries.
