United Arab Emirates (UAE) has come up to rescue Pakistan’s struggling economy as it has promised to invest an additional $10 billion in the country.
The pledge was made during a meeting between Prime Minister Shehbaz Sharif and UAE President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi.
The meeting, which took place on the sidelines of a round table conference, saw the two leaders discussing mutual interests, investment opportunities in Pakistan, and global and regional issues. The UAE’s investment promise is a significant boost to Pakistan’s economy, which is facing challenges including a fiscal shortfall and high inflation.
Pakistan is seeking investment from friendly nations to stabilize its economy and reduce reliance on foreign aid.
The government is working to boost foreign exchange reserves, which currently stand at $14.5 billion, and reduce inflation, which has come down to 17% in April from a record high of 38% last May.
The UAE’s investment pledge follows Saudi Arabia’s promise to accelerate investment of $5 billion in Pakistan. The Saudi foreign minister has also stated that Riyadh will “progress significantly” to invest in projects in Pakistan.
The government is hopeful that these investment pledges will lead to further economic cooperation with Gulf states and help stabilize Pakistan’s economy.
The country is seeking at least $6 billion in additional financing from the IMF under the Resilience and Sustainability Trust, but the Fund has conditionalized the next bailout package on the presentation of an aligned budget and parliamentary approval.
Earlier, PM Shehbaz Addressing a roundtable meeting of IT professionals in Abu Dhabi, the prime minister said that his visit to the UAE is not for seeking loans, but for cooperation and investment.
“We want to change our economy and I am determined to join hands with our brothers in the UAE to transform Pakistan’s economy,” he said.
The prime minister praised the talented IT professionals of the UAE and Pakistan, saying that they are playing a crucial role in digitizing all sectors of the economy.
Highlighting the potential of Pakistan’s youth, the prime minister said that 60% of the country’s population consists of young boys and girls aged 15-30 years.
“We are focusing on information technology, artificial intelligence, and improvement in various sectors of the economy,” he added.
The prime minister lauded the UAE’s vision to move beyond an oil-based economy, saying that it has made significant progress in industrial development, digital economy, and imports and exports.
He praised the leadership of President Muhammad bin Zayed, calling him a “dear brother” and a “great supporter” of Pakistan.
