UAE Extends $2 Billion Debt for Pakistan, Announces Investment Cooperation

The announcement followed the prime minister’s

meeting with UAE President Sheikh Mohamed

bin Zayed Al Nahyan in Rahim Yar Khan

Associated Press of Pakistan

Islamabad: Prime Minister Shehbaz Sharif announced during a federal cabinet meeting that the United Arab Emirates (UAE) has agreed to extend the $2 billion debt repayment due this month. The announcement followed the prime minister’s meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan.

Positive Outcomes from UAE Meeting

In his televised remarks, Prime Minister Shehbaz Sharif described the meeting as “positive and constructive.” Discussions centered on enhancing bilateral ties and investment cooperation. The UAE president emphasized swift action on joint investment projects, reaffirming his country’s commitment to strengthening its partnership with Pakistan.

During their one-on-one discussion, Sheikh Mohamed bin Zayed announced the debt rollover, a gesture that Prime Minister Shehbaz appreciated, calling it a reflection of the strong relationship between the two nations.

Economic Stability and Reform

The prime minister highlighted efforts to stabilize the national economy. He stressed the importance of sacrifices and hard work to ensure Pakistan’s prosperity.

“Through our collective efforts, the economy is stabilizing. We must continue with unwavering commitment to achieve our goals,” he remarked, adding that reducing electricity costs is vital to boosting exports and commerce.

A meeting to address power prices is scheduled for this week, following last week’s preliminary discussions involving provincial governments. Prime Minister Shehbaz also noted significant progress in supporting small and medium enterprises (SMEs) through recent decisions by the SMEDA Board.

Boosting Textile Exports and Bilateral Cooperation

The prime minister highlighted the rising textile exports and reiterated the importance of focusing on export-led growth and non-traditional markets. He also announced the upcoming visit of Indonesian President Prabowo Subianto, with plans to discuss cooperation in Halal meat, rice exports, and edible oil imports.

Tackling National Challenges

Prime Minister Shehbaz condemned the recent firing incident in Lower Kurram, which injured the deputy commissioner and others. He called it an attempt to derail peace efforts and prayed for the victims’ swift recovery.

He also reiterated the government’s commitment to curbing human smuggling, a crime that has claimed hundreds of lives and tarnished Pakistan’s image globally. Regular meetings with the Interior Ministry and related departments are underway to address the issue.

Federal Cabinet Approvals

1. Data Protection Under PECA 2016: The cabinet approved declaring the Federal Board of Revenue’s (FBR) infrastructure as critical under the Prevention of Electronic Crimes Act (PECA) 2016 to safeguard sensitive data.
2. Fly Dubai Flight Permits: Temporary operating permits for Fly Dubai’s flights between Lahore, Islamabad, and Dubai were extended until February 3, 2025.
3. Gwadar Port Utilization: The Ministry of Maritime Affairs briefed the cabinet on public sector imports and exports through Gwadar Port. The prime minister directed that 60% of all public sector trade be conducted via the port.
4. e-Office Implementation: Progress on the e-Office system was reviewed. Starting January 1, 2025, all federal ministry communications will be paperless, significantly reducing processing times and operational costs.
5. Refurbished Chromebooks for Schools: The cabinet approved purchasing refurbished Chromebooks for schools and colleges, with a third-party audit to ensure transparency.
6. Textile Parks MoU: The cabinet approved an MoU with China’s Shandong Ruyi Group to establish textile parks in Pakistan.
7. Diplomatic Academy MoU: An MoU between Pakistan’s Foreign Service Academy and Serbia’s Diplomatic Academy was also approved to enhance diplomatic training.
8. Hajj Policy for Private Operators: The cabinet approved recommendations for 46 private operators to manage the 2025 Hajj arrangements, with a directive to finalize pending court cases and formulate a new Hajj policy.

Future Directions

Prime Minister Shehbaz Sharif emphasized the need for continued collaboration across ministries to address pressing challenges and ensure sustainable development. The federal cabinet also validated decisions made during the Cabinet Committee on Legislative Cases meetings held on December 31, 2024, and January 1, 2025.

Tags: UAE Debt Extension, Pakistan Economy, Bilateral Trade, Textile Exports, Gwadar Port, e-Office Implementation, Hajj Policy, Fly Dubai Permits