UAE rolls over $2bn loan, agrees to provide additional investment: PM

In a key development, Prime Minister Shehbaz Sharif on Tuesday informed that the United Arab Emirates (UAE) has agreed to roll over $2 billion that was due in January.

Addressing a federal cabinet meeting, PM Shehbaz shared details of his recent meeting with the President of the United Arab Emirates (UAE), His Highness Sheikh Mohammed bin Zayed Al Nahyan.

During the meeting, Nahyan assured of further investments in Pakistan, PM Shehbaz said.

“Al Nahyan deferred the repayment of the $2 billion loan, which was due in January,” PM informed.

PM Shehbaz met the President of the UAE on Sunday at Rahim Yar Khan, where both leaders discussed economic and political ties.

According to a statement from the Prime Minister’s Office (PMO), the two leaders discussed a wide range of issues, including economic collaboration, regional stability, climate change, and the promotion of mutual interests on the global stage.

Pakistan enjoys historic friendly ties with the UAE, and the Gulf state is also among the key investors in Pakistan.

The prime minister said that he has instructed Deputy Prime Minister, Ishaq Dar to enhance business ties with the UAE.

Energy woes

Touching on energy rates, PM Shehbaz said that federal and provincial governments shall play their part in reducing electricity prices.

“Unless the cost of energy is brought down, our industry and exports cannot grow,” he said.

Shehbaz informed the government has come up with 2-3 options to reduce electricity prices, which shall be implemented at the earliest.

“We will have to approach the International Monetary Fund (IMF) for negotiations in this matter,” he added.

PM urges authorities to address revenue shortfall, meet IMF targets

Pakistan is currently under a $7-billion, 37-month loan programme with the Washington-based lender, which was inked last year in July.

The next review by the IMF is expected in February.