UAE extends $2 billion debt rollover for Pakistan

ISLAMABAD: The United Arab Emirates (UAE) has agreed to roll over a maturing debt of $2 billion for Pakistan, a move that is expected to provide significant relief to the country’s foreign exchange reserves. Prime Minister Shehbaz Sharif made the announcement, revealing that the debt was due to mature in January 2025.

The development follows a recent meeting between Prime Minister Sharif and UAE President Sheikh Mohammad bin Zayed Al-Nahyan in Rahim Yar Khan, where they discussed enhancing bilateral relations and exploring new investment opportunities. Addressing a cabinet session, PM Sharif expressed optimism that these diplomatic efforts are yielding positive results and helping stabilise Pakistan’s economy.

“I have instructed Deputy Prime Minister Ishaq Dar to pursue investment-related matters with the UAE,” the Prime Minister said, highlighting the importance of strengthening economic ties. He also noted that Pakistan’s textile exports have seen an encouraging increase, which he believes is a sign of growing economic stability.
However, PM Sharif also pointed out that Pakistan’s industrial, agricultural, and export sectors would not be able to thrive unless electricity prices were reduced. He mentioned that to bring down power tariffs, the government would have to approach the International Monetary Fund (IMF) for assistance.

Security and Social Issues

During the cabinet session, the Prime Minister also addressed the recent attack on the Deputy Commissioner in Lower Kurram, which occurred shortly after a peace agreement in the region. He condemned the attack, calling it an attempt to undermine the peace process. The Deputy Commissioner is currently receiving medical treatment, and the Prime Minister expressed his condolences and prayers for the injured.

Additionally, PM Sharif condemned the growing issue of human trafficking, emphasising that the Interior Minister, Mohsin Naqvi, and his team are actively working to eradicate this illegal practice. The Prime Minister reiterated the government’s commitment to tackling these pressing issues while pushing forward with economic and diplomatic reforms.