The UAE has agreed to roll over the repayment of $2 billion owed by Pakistan, Prime Minister Shehbaz Sharif confirmed on Tuesday, according to a Reuters report.
Sharif stated that the agreement followed a meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan during a private visit to Pakistan on Sunday. “In a one-on-one meeting, he said the $2 billion repayment due is being extended,” Sharif announced during a televised press conference.
Sharif also requested additional UAE investments in key sectors to support Pakistan’s economic stability. He noted that the UAE president expressed continued commitment to investment, emphasising the “brotherly ties” between the two nations.
Securing external funding has been critical for Pakistan to meet International Monetary Fund (IMF) conditions for bailout packages. The IMF’s next review of its $7 billion, 37-month loan programme with Pakistan is scheduled for February.
Pakistan, with an economy valued at $350 billion, has faced recurring financial crises and has sought IMF assistance 23 times since 1958. Persistent fiscal challenges, including currency depreciation and rising debt obligations, have kept the country reliant on external financing to stabilise its economy.
