UAE rolls over $2bn loan, PM Shehbaz Sharif confirms

UAE president during his Rahim Yar Khan visit expressed strong interest in collaborating with Pakistan

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Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) has agreed to roll over a $2 billion loan deposit, offering significant fiscal relief to Pakistan.

Chairing a cabinet meeting, the prime minister shared details of his recent meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, which took place in Rahim Yar Khan.

PM Shehbaz stated that the UAE leader proposed extending the $2 billion loan repayment due in January, a gesture aimed at supporting Pakistan’s economic stability.

“He [UAE president] happily informed me that the $2 billion owed by Pakistan in January was being extended by the UAE. He proposed it himself and immediately issued directives,” Prime Minister Shehbaz said.

This loan extension comes as Pakistan has seen positive macroeconomic developments over the past two years, including a significant increase in foreign exchange reserves, which have risen from $2.7 billion to $11.7 billion. Despite this, the country’s external public debt remains unchanged at $100 billion.

In addition to the loan rollover, PM Shehbaz Sharif revealed that the UAE President reaffirmed his country’s support for Pakistan’s efforts towards economic stability, highlighting the historic brotherly ties between the two nations.

PM Shehbaz also described his discussion with UAE president as “positive and productive,” noting that the talks included exploring investment opportunities and strategies to strengthen mutual relations.

On Sunday, UAE President Sheikh Mohamed bin Zayed Al Nahyan expressed strong interest in collaborating with Pakistan in the mining, minerals and agriculture sectors.

The UAE president noted that this renewed economic momentum had created opportunities for enhanced bilateral investment and cooperation, according to a statement from the Prime Minister's Office.

Al Nahyan was received at the Rahim Yar Khan airport by Prime Ministre Shehbaz, Punjab Chief Minister Maryam Nawaz, Defence Minister Khawaja Asif, Information Minister Attaullah Tarar and other officials.

During the meeting, they discussed a wide range of issues, including economic collaboration, regional stability, climate change, and the promotion of mutual interests on the global stage. They pledged to deepen their economic, political, and cultural ties.