The commitment of $10 billion to Pakistan from the UAE has come at a critical juncture. It is a welcome step, and will go a long way in boosting the confidence of international investors and other Gulf States in the country’s economy. The generosity reiterated by UAE’s President Sheikh Mohamed Bin Zayed Al-Nahyan as he met Prime Minister Shehbaz Sharif in Abu Dhabi will act as a springboard for coordinating measures to pool in money and talent, and tap at the avenues of trade, commerce and developmental ventures. That is why it was expressly stated that the investment will flow into multiple sectors, and they range from energy to port operations, and from agriculture to minerals and banking.
The UAE has been an active player in Pakistan’s economy, and is home to a diaspora of more than 1.8 million. Their remittances are a prime source of strength and the UAE, likewise, had stood fast in bailing out Pakistan as and when desired. Of late, the relationship has graduated to new heights as UAE businesses had exhibited deep interest in big-ticket projects, especially in petro-chemicals, ports and shipping. Information technology and renewable energy are also portfolios that are being looked into apart from oil benevolence that is a cornerstone of economic interaction.
A change in policy prescription from Pakistan that it will opt for investment, and not loan and aid is driving dividends. This has pooled in the divergent resource bank who want to benefit from human expertise, skilled labour and the plethora of opportunities that are in Pakistan in terms of cheap raw material and production. While the UAE is also part and parcel of emerging geo-economics and relies on the accessibility generated from BRI-CPEC, it is a win-win situation to invest in a country that is at the crossroads of the region.
A few days after a depressing assessment that FDIs are shrinking, the UAE’s largesse is appreciated. It’s high time for Islamabad to look inward and do the necessary homework to facilitate investors instantly and put an end to lethargy that had hindered prosperity.
Published in The Express Tribune, May 26th, 2024.
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