UAE agrees to roll over $2bn dues for Pakistan: PM Shehbaz

Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) agreed to roll over $2 billion, which was due for repayment this month.

This development is expected to bring stability to Pakistan's economy and provide a much-needed injection of foreign exchange.

The rollover fulfills a key condition set by the International Monetary Fund (IMF) to secure external financing before reviving its $7 billion bailout program for Pakistan. 

The promising engagement with multilateral partners, alongside IMF support, has bolstered Pakistan's standing under the Extended Fund Facility (EFF).

Last year, UAE, China and Saudi Arabia assisted Pakistan in obtaining the IMF’s loan by providing timely confirmation of external financing. 

Prime Minister Shehbaz Sharif informed the cabinet that during his recent meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan on Sunday, the UAE leader agreed to extend the loan repayment.

“In a one-on-one meeting, he said…there is a $2billion repayment due and we are extending this,” Dawn.com quoted Premier. 

“I asked for the UAE to invest a few billion dollars in key investment projects, and that would be helpful,” the Prime Minister told the cabinet.

“It is the UAE’s commitment, and these two countries share brotherly relations,” the Prime Minister added, quoting President Nahyan.

Prime Minister Shehbaz Sharif also shared the government's plan to negotiate with the IMF to reduce electricity prices in Pakistan. This move aims to alleviate the financial burden on citizens and provide relief from high energy costs.