By Staff Reporter
ISLAMABAD: The United Arab Emirates on Thursday agreed to roll over a $2 billion existing loan to Pakistan and provide an additional $1 billion, a statement from Prime Minister’s Office said.
Prime Minister Shehbaz Sharif’s Office made the announcement after his meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan in Abu Dhabi. Sharif kicked off a two-day visit to the United Arab Emirates on Thursday.
“The President of the UAE agreed to roll over the existing loan of $2 billion and provide $1 billion additional loan,” the statement said.
The move will bolster the country’s fast depleting foreign exchange reserves. The central bank foreign reserves fell to a critical level of $4.3 billion in the week ending January 6, barely enough for three weeks of imports.
PM Sharif will also discuss business and economic opportunities with other officials and business leaders during his visit.
“We share a resolve and understanding that continuous efforts need to be made to further strengthen trade, investment and economic relations,” Sharif said in a statement.
Information Minister Marriyum Aurangzeb said Sheikh Al Nahyan welcomed the prime minister upon his arrival in Abu Dhabi and wished for the country’s progress and development.
“Both representatives exchanged views on regional, international issues and those of bilateral interest,” Aurangzeb wrote on Twitter. “Both agreed to deepen investment cooperation, promote partnership and enable opportunities to integrate investment between the two countries.
The two leaders also agreed on the importance of frequent bilateral exchanges and regular dialogue with each other at all levels to further strengthen their relationship, she said.
Meanwhile, the Saudi Fund for Development (SDF) has signed an agreement with the Ministry of Economic Affairs to finance oil derivatives worth $1 billion to Pakistan.
A government statement said the agreement on the “directives from King Salman bin Abdulaziz Al Saud, and the Crown Prince, Mohammed bin Salman Al Saud”.
“Aimed at supporting Pakistan’s economy, sector growth, and navigating economic challenges, the strategic agreement comes as a continuation of the support provided by the government of Saudi Arabia to Pakistan to build a sustainable economy,” the statement said. “In 2019 and 2021, the SFD signed agreements to finance oil derivatives with a value of $4.44 billion.”
The SFD has supported more than 40 projects and programs in different development sectors valued approximately at $1.4 billion to finance Pakistan’s energy, water, transportation, and infrastructure projects.
On Tuesday, Saudi Crown Prince Mohammed had directed the Kingdom’s investment arm to consider increasing its deposits to Pakistan’s central bank to reach $5 billion.
The Crown Prince also “directed the authorities to study increasing the Kingdom’s investments in Pakistan to reach $10 billion”.
Last month, Saudi Arabia extended the term of a $3 billion deposit to the State Bank of Pakistan for one year.
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