UAE has rolled over Pakistan’s $2bn debt, PM tells cabinet

The United Arab Emirates (UAE) this month announced a $2 billion debt transfer to Pakistan, Prime Minister Shehbaz Sharif said at a federal cabinet meeting on Tuesday. The announcement follows a one-on-one meeting between Prime Minister Shehbaz and UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan. The prime minister told the cabinet that the meeting was “positive and constructive”, where the two leaders discussed strengthening bilateral ties and enhancing investment cooperation. In televised remarks at the cabinet meeting, the prime minister thanked the UAE president for the gesture and emphasized its importance for Pakistan’s economic stability. He mentioned that Sheikh Nahyan expressed his determination to invest in Pakistan and assured that his country is not lagging behind in this regard.  H.H. Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, meets H.E. Muhammad Shehbaz Sharif, Prime Minister of the friendly Islamic Republic of Pakistan, in the city of Rahim Yar Khan if Pakistan, where they discussed ways of cooperation and collaboration between… pic.twitter.com/ClJ87KY5TL — UAE Embassy PK (@uaeembassyisb) January 5, 2025 “The UAE president reiterated his country’s commitment to strengthening long-term partnership with Pakistan and expressed his desire to quickly implement investment projects,” he said. He said he also thanked the visiting dignitary for the debt rollover announcement.  Prime Minister Shehbaz emphasized that Pakistan’s economy is on the way to stabilization thanks to joint efforts. Emphasizing the government’s determination to transform Pakistan into a prosperous nation and regain the country’s lost glory, he said, “But it requires a path of sacrifice, blood and sweat and nothing less.” He said the launch of the domestic economy initiative necessitated efforts to reduce the cost of electricity, which he described as an inevitable step to improve exports and trade. He also said he chaired a meeting of provincial governments last week to discuss the reduction in electricity prices and that there would be a “comprehensive” discussion on the matter this week. Expressing satisfaction with the recent increase in textile exports, Shehbaz emphasized the need for export-led growth and diversification into non-traditional sectors. He emphasized the importance of Small and Medium Enterprises (SMEs) for economic progress and mentioned the recent meeting to supplement the SMEDA Board where some important decisions were also taken. The next hearing in the case is scheduled for January 15, he added. The Prime Minister said Indonesian President Prabowo Subianto is scheduled to visit Pakistan later this month, where the two sides are likely to discuss strengthening and integrating bilateral cooperation. The two countries will also explore the possibilities of cooperation in the export of halal meat and rice, as well as in the import of edible oil. The Prime Minister condemned the recent incident of firing in Lower Kurram that injured the Deputy Commissioner and others and called it an attempt to sabotage the peace accord. He expressed hope for the recovery of the victims and reiterated the government’s commitment to fight people-smuggling, a practice that has caused significant loss of life and tarnished Pakistan’s reputation around the world. “There are regular negotiations with the Ministry of the Interior and other relevant departments to solve this serious problem,” he added.