The United Arab Emirates (UAE) has rolled over a $2 billion loan deposit, Prime Minister Shehbaz Sharif announced on Tuesday, granting Pakistan a substantial fiscal respite.
The country has been making macroeconomic progress following two years of fiscal crises, with foreign exchange reserves rising steadily and political stability improving.
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PM Shehbaz, during a cabinet meeting, said he met UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan, where the Gulf nation’s top leader proposed rolling over the loan.Play Video
“He happily informed me that $2 billion owed by Pakistan in January was being extended by the UAE. He proposed it himself and immediately issued [directives as well],” the prime minister said.
Pakistan’s foreign exchange reserves have gone up from $2.7 billion to $11.7 billion in the last two years and while external public debt stood at $100 billion two years back, it currently stands in the same position.
Briefing the cabinet further about his meeting, the prime minister said the UAE president vowed to back Pakistan in its bid for economic stability based on the nations’ historic brotherly ties.
Prime Minister Shehbaz also described his meeting with the UAE president as positive and productive, noting that discussions centred on investment opportunities.
Shehbaz emphasised measures aimed at enhancing mutual ties and revealed that a specific goal had been set. “This target will create a favourable impression regarding investment,” he added.
