- Prime Minister Shehbaz said he had a productive meeting with the UAE President.
- He affirms that the leader of this Gulf country assured him of his support for progress.
- The Prime Minister says progress will not be possible until electricity costs are reduced.
The United Arab Emirates (UAE) has rolled over a $2 billion loan, Prime Minister Shehbaz Sharif announced on Tuesday, giving Pakistan a substantial fiscal reprieve.
The country has made macroeconomic progress after two years of fiscal crisis, with steadily increasing foreign exchange reserves and improving political stability.
Prime Minister Shehbaz, during a cabinet meeting, said he met UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan, where the Gulf country’s top leader offered to reappoint the loan.
“He informed me with pleasure that the UAE was extending the $2 billion owed to him by Pakistan in January. He proposed it himself and immediately issued (along with guidelines),” said the Prime Minister.
Pakistan’s foreign exchange reserves have increased from $2.7 billion to $11.7 billion over the past two years and, while external public debt stood at $100 billion two years ago, she is currently in the same situation.
Further briefing the cabinet about his meeting, the Prime Minister said the UAE President was committed to supporting Pakistan in its quest for economic stability based on the historic fraternal ties between the nations.
Prime Minister Shehbaz also described his meeting with the UAE President as positive and productive, noting that the discussions focused on investment opportunities.
Shehbaz emphasized on measures to strengthen mutual ties and revealed that a specific target had been set. “This goal will create a favorable investment impression,” he added.
No progress without reduction in electricity prices
Prime Minister Shehbaz called on Deputy Prime Minister Ishaq Dar to accelerate efforts on investment-related issues while emphasizing the urgent need to reduce electricity prices.
“We cannot make progress until electricity costs come down,” he said, adding that two to three rate reduction options were under consideration. A follow-up meeting is planned for later this week to finalize these measures.
The Prime Minister acknowledged that it would be necessary to seek assistance from the International Monetary Fund (IMF) 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 the SMEDA 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 hold discussions with the Indonesian president during his upcoming visit to Pakistan later this month to explore ways to boost exports.
Highlighting Pakistan’s close ties with Malaysia, he reaffirmed the government’s commitment to strengthening brotherly relations with the Southeast Asian nation.
“Malicious act”
Shifting his attention to Kurram, the Prime Minister said that a convoy was attacked, resulting in injuries to Kurram Deputy Commissioner Javedullah Mehsud.
He called the incident a “malicious act” aimed at undermining peace efforts and offered prayers for the speedy recovery of the injured.
The incident occurred despite a truce agreement between the warring tribes, who had reached an agreement just days before the attack. However, officials said those who were part of the pact did not attack the convoy.
Addressing the issue of human trafficking, the Prime Minister called it a “heinous crime” that has persisted for years. He reassured the public of the government’s strong resolve to combat trafficking, noting that he is personally overseeing efforts and holding meetings to ensure decisive action.
Prime Minister Shehbaz also expressed optimism over the economic stabilization of the country, saying that hard work and determination would lead Pakistan to become a prosperous nation.
He recognized, however, that maintaining economic stability would require significant sacrifices and constant efforts.