ISLAMABAD: Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) has extended a $2 billion loan deposit, providing Pakistan with crucial financial relief.
After two years of financial troubles, the nation has been making macroeconomic progress, with political stability strengthening and foreign exchange reserves steadily growing.
PM Shehbaz, during a cabinet meeting, said he met UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan, where the Gulf nation's top leader proposed rolling over the loan.
"He happily informed me that $2 billion owed by Pakistan in January was being extended by the UAE. He proposed it himself and immediately issued [directives as well]," the prime minister said.
Pakistan's foreign exchange reserves have gone up from $2.7 billion to $11.7 billion in the last two years and while external public debt stood at $100 billion two years back, it currently stands in the same position.
Briefing the cabinet further about his meeting, the prime minister said the UAE president vowed to back Pakistan in its bid for economic stability based on the nations' historic brotherly ties.
Prime Minister Shehbaz also described his meeting with the UAE president as positive and productive, noting that discussions centred on investment opportunities.
Shehbaz emphasised measures aimed at enhancing mutual ties and revealed that a specific goal had been set. "This target will create a favourable impression regarding investment," he added.
PM Shehbaz called on Deputy Prime Minister Ishaq Dar to expedite efforts on investment-related matters while emphasising the urgent need to reduce electricity prices.
"We cannot achieve progress until electricity costs are lowered," he said, adding that two to three options for reducing tariffs are under consideration. A follow-up meeting is planned later this week to finalise these measures.
The prime minister acknowledged that seeking assistance from the International Monetary Fund (IMF) would be necessary to address the country’s economic challenges.
Speaking about the Small and Medium Enterprises Development Authority (SMEDA), the prime minister described it as the backbone of Pakistan's progress and prosperity.
He noted that SMEDA’s board had been reconstituted after a prolonged delay and announced another meeting on January 15 to review its performance and strategic direction.
On the trade front, the prime minister highlighted a significant increase in textile exports, calling the sector a major source of Pakistan’s traditional exports. He also revealed plans to engage in discussions with the Indonesian president during his upcoming visit to Pakistan later this month to explore ways to boost exports.
Highlighting Pakistan’s strong ties with Malaysia, he reaffirmed the government’s commitment to strengthening brotherly relations with the Southeast Asian nation.
Moving his attention towards Kurram, the prime minister said that a convoy was attacked, which resulted in injuries to Kurram deputy commissioner Javedullah Mehsud.
He labelled the incident a "malicious act" aimed at undermining peace efforts and extended prayers for the swift recovery of those injured.
The incident occurred despite a truce agreement between warring tribes, who had reached an understanding just days before the attack. However, officials said that those who were part of the pact did not attack the convoy.
Addressing the issue of human trafficking, the prime minister 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.
Prime Minister Shehbaz 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.
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