On Tuesday, Prime Minister Shehbaz Sharif announced that the United Arab Emirates (UAE) had rolled over a $2 billion loan deposit. This move provided Pakistan with a significant boost towards achieving economic stability.
After two years of fiscal struggles, Pakistan is now seeing improvement. Foreign exchange reserves are rising steadily, and political stability is making headway. The prime minister shared details of a meeting with UAE President Sheikh Mohamed bin Zayed Al Nahyan, where the leader of the Gulf nation proposed extending the loan.
PM Shehbaz recalled, “He told me that the $2 billion Pakistan owed in January would be extended. The UAE president proposed this himself and took immediate action.”
Pakistan’s foreign exchange reserves have increased from $2.7 billion to $11.7 billion in just two years. Although external public debt was at $100 billion two years ago, it remains unchanged today. The prime minister emphasized that the UAE’s support was critical in bolstering Pakistan’s economic stability.
The prime minister described his discussions with President Sheikh Mohamed as both positive and productive. The talks focused on strengthening investment opportunities. PM Shehbaz stressed that measures to improve bilateral relations had been set, with a specific target to boost investments. This, he said, would encourage a favorable environment for foreign investments.
Despite the optimism, PM Shehbaz pointed out the need for urgent reforms. He urged Deputy Prime Minister Ishaq Dar to fast-track efforts related to investments. “We can’t move forward without reducing electricity prices,” he emphasized. The government is considering two to three options to bring tariffs down, and a follow-up meeting will take place later this week.
The prime minister also acknowledged that seeking support from the International Monetary Fund (IMF) would be crucial in tackling Pakistan’s economic stability issues.
Discussing the Small and Medium Enterprises Development Authority (SMEDA), he said it plays a pivotal role in Pakistan’s development. After a long delay, SMEDA’s board has been restructured. PM Shehbaz announced a meeting on January 15 to review its performance.
On the trade front, he highlighted the remarkable growth in textile exports, which are a vital source of Pakistan’s earnings. He also plans to meet the Indonesian president during an upcoming visit to explore further export opportunities. Moreover, Pakistan’s relations with Malaysia remain strong, and the government is committed to enhancing this partnership.
Shifting focus to security, the prime minister condemned a recent attack on a convoy in Kurram. The attack injured Kurram Deputy Commissioner Javedullah Mehsud. He described the incident as a “malicious act” aimed at destabilizing peace efforts.
PM Shehbaz also spoke about the ongoing challenge of human trafficking, calling it a “heinous crime.” He assured the public that the government was determined to tackle this issue. He is personally overseeing efforts to curb trafficking.
Finally, the prime minister expressed optimism about Pakistan’s journey toward economic stability. He believes that hard work and resolve will pave the way for a prosperous future. However, he acknowledged that continued economic stability would demand significant sacrifices and sustained effort.
