ISLAMABAD: In a significant fiscal relief as Prime Minister Shehbaz Sharif Tuesday said, the United Arab Emirates (UAE) agreed to roll over $2 billion in debt for Pakistan due to be paid this month.
The UAE rolled over its $2 billion deposits with State Bank of Pakistan (SBP) since 2023, thereby, helping it shore up its foreign exchange reserves, strengthen its currency and secure financial bailouts from the International Monetary Fund (IMF).
The prime minister, while chairing a meeting of the federal cabinet, recalled his one-on-one meeting with the UAE President, Sheikh Mohamed bin Zayed Al-Nahyan, in Rahim Yar Khan on Sunday, where President Al-Nahyan told him that Pakistan’s payment of the $2 billion loan was due in January.
“So, Mr President Al-Nahyan said we [UAE] are happy that we are extending it […] he proposed it himself and I thanked him,” Sharif said.
Two days ago, the UAE president was in Rahim Yar Khan on a hunting expedition, during which the prime minister along with his niece Maryam Nawaz, the chief minister Punjab, had flown to the city to specially meet the visiting dignitary.
In the cabinet meeting, Sharif said that he also requested the UAE president to consider investing a few billion dollars in key investment projects and that would be helpful.
“The president affirmed that the UAE is committed to making investment in Pakistan given the strong brotherly relations between the two countries,” added Sharif.
He also said that the government will have to approach the IMF to reduce electricity prices in the country.
He said the government will have to move forward as our home-grown economic plan – the National Economic Transformation Plan 2024-29 – had already been initiated.
“That’s why I’m convening a meeting as the success of our industry, exports and commerce hinges on the reduction of electricity prices,” he maintained.
He added that a meeting was held last week to deliberate on electricity price reductions; taking into account the perspectives of provinces and allies, and that discussions had reached a conclusion.
“We will have a detailed meeting to take those options forward so that our growth can be possible,” he said. “For that, we will have to go to the IMF,” he added.
Regarding Small and Medium Enterprises Development Authority (SMEDA), he termed it as the backbone of the country’s development and prosperity.
He pointed out that the SMEDA board had been reconstituted after an extended delay and announced an additional meeting scheduled for January 15 to examine its performance and strategic direction.
On the trade front, Sharif highlighted a notable increase in textile exports, identifying the sector as a key contributor to the country’s traditional export base.
He also disclosed plans to hold discussions with the Indonesian president during his forthcoming visit to Pakistan later this month, aimed at exploring more opportunities for enhancing exports.
Emphasising Pakistan’s robust relationship with Malaysia, he reiterated the government’s commitment to further strengthen the brotherly relations with the Southeast Asian country.
About the law and order situation in Kurram District, he said that a convoy was attacked, which resulted in injuries to Kurram Deputy Commissioner Javedullah Mehsud.
He termed the incident as a malicious act aimed at undermining peace efforts and extended prayers for the swift recovery of those injured.
Addressing the issue of human trafficking, Sharif described it as a heinous crime that has persisted for years.
He reassured the public of the government’s firm resolve to combat trafficking, noting that he is personally overseeing efforts and conducting meetings to ensure decisive action.
Sharif also expressed optimism about the country’s economic stabilisation, stating that hard work and determination would lead Pakistan towards becoming a prosperous nation.
However, he acknowledged that sustaining economic stability would require significant sacrifices and consistent efforts.
Copyright Business Recorder, 2025
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