According to Pakistan, the United Arab Emirates has agreed to extend their financial support for Pakistan by $3 billion. This agreement is crucial to bolster Pakistan’s foreign exchange reserves as the South Asian country struggles with an economic crisis.
Prime Minister’s Meets the President of United Arab Emirates. The President of the UAE agreed to roll over the existing loan of US$ 2 billion and provide US$ 1 billion additional loan pic.twitter.com/h6pEhm6IuM
— Marriyum Aurangzeb (@Marriyum_A) January 12, 2023
Following a meeting with Prime Minister Shehbaz Sharif, UAE President Sheikh Mohamed bin Zayed Al Nahyan has decided to offer a $1 billion new loan and roll over a $2 billion current loan, according to a statement released by the Pakistani Prime Minister’s Office on Thursday.
Following Saudi Arabia’s Crown Prince Mohammed bin Salman’s announcement that it was considering raising the amount of deposits in Pakistan’s central bank to $5 billion, the UAE has offered its assistance.
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Pakistan also received offers of more than $10 billion in aid earlier this week as a result of floods that submerged a third of the country and reduced its GDP by half.
Due to a standoff with the International Monetary Fund over tax objectives, disbursement of loan payments was delayed, leaving Pakistan’s economy cash-strapped.
With foreign exchange reserves falling to $5.85 billion, or less than one month’s worth of imports, the nation is experiencing a dollar crisis.
According to the statement, the two countries also decided to expand their investment cooperation and create prospects for investment integration. The UAE has previously declared its intention to invest $1 billion in Pakistani businesses operating in a range of industries.
“His Highness Sheikh Mohamed bin Zayed welcomed Prime Minister Sharif to Abu Dhabi and wished progress and prosperity for Pakistan,” Marriyum Aurangzeb wrote on Twitter.
The PM thanked the UAE President for inviting him to the brotherly country.The two leaders discussed the fraternal relations existing between Pakistan and the UAE; explored ways and means to further strengthen these ties, especially in the fields of trade, investment and energy.
— Marriyum Aurangzeb (@Marriyum_A) January 12, 2023
UAE’s President Zayed also agreed to a state visit to Pakistan at Shehbaz Sharif’s invitation. The dates of the visit will be decided through diplomatic channels.
This is the third visit of PM Shehbaz to the UAE after assuming the office of prime minister in April.