UAE Extends $2 Billion Payment to Pakistan

By Gibran Naiyyar Peshimam

ISLAMABAD (Reuters) – The United Arab Emirates has agreed to roll over the payment of $2 billion due by Pakistan this month, announced Prime Minister Shehbaz Sharif on Tuesday.

Sharif revealed that during a personal visit to Pakistan on Sunday, he met with UAE President Sheikh Mohammed bin Zayed Al Nahyan. “In a one-on-one meeting he said…there is a $2 billion dollar repayment due and we are extending this,” Sharif told reporters at a televised press conference.

He further stated, “I asked for the UAE to invest a few billion dollars in key investment projects and that would be helpful.” The President assured him that the UAE was committed to this investment, emphasizing the brotherly ties between the two nations.

Securing external financing has previously been crucial for the International Monetary Fund (IMF) to approve bail-out deals for the cash-strapped nation. The next review of its $7 billion, 37-month loan program to Pakistan is expected in February.

Pakistan’s $350 billion economy has faced ongoing challenges, requiring 23 IMF bailouts since 1958 due to persistent economic cycles.