Pakistan, UAE review economic ties, push for investment-led cooperation at WEF

Pakistan and the United Arab Emirates on Tuesday reviewed their economic engagement and agreed to strengthen investment-led cooperation during a meeting on the sidelines of the World Economic Forum (WEF) Annual Meeting 2026.

This was discussed during Finance Minister Muhammad Aurangzeb’s meeting with UAE Minister of State for Financial Affairs Mohamed Al Hussaini in Davos, where both sides discussed bilateral economic ties, regional outlook and avenues for expanding long-term investment partnerships.

According to the Finance Division, the Emirati minister sought an update on Pakistan’s engagement with the International Monetary Fund (IMF).

Aurangzeb briefed him on the smooth continuation of the IMF programme, including the ongoing review under the Extended Fund Facility and the first review of the Climate Resilience programme.

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The finance minister thanked the UAE for its continued financial support, including bilateral deposits and transactions, and said Pakistan was keen to transform traditional assistance into long-term investment partnerships to support sustainable growth.

Al Hussaini concurred, stressing that investment-led cooperation was critical for economic stability and long-term development.

Both sides noted the strengthening of bilateral relations, particularly following the recent visit of the UAE President to Pakistan.

Al Hussaini highlighted the importance of strong people-to-people ties, describing them as the backbone of the longstanding partnership between the two countries.

Aurangzeb also shared Pakistan’s recent steps to strengthen its regulatory framework, including the establishment of a dedicated authority focusing on tokenisation, and pointed to growing collaboration with Emirati financial institutions. He noted encouraging trends in business-to-business engagement and offshoring activities, which were welcomed by the UAE side.

Exchanging views on the global and regional economic outlook, the Emirati minister expressed optimism about improving prospects and said the past year had marked positive progress for Pakistan.

Aurangzeb said Pakistan had successfully completed key financial transactions over the past year, reflecting improved market confidence and renewed access to international capital markets.

The finance minister highlighted a significant reduction in inflation and improvements in macroeconomic stability.

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Al Hussaini acknowledged the improvement in Pakistan’s economic conditions since the start of the reform programme and emphasised that policy continuity was essential for sustained progress.

Aurangzeb reaffirmed the government’s commitment to reforms under the leadership of the prime minister and briefed the UAE side on ongoing structural reforms, including privatisation initiatives.

Al Hussaini underscored the importance of privatisation in enhancing efficiency and competitiveness, sharing the UAE’s experience of economic transformation driven by private sector participation.

The meeting concluded with both sides reaffirming their commitment to deepening economic cooperation and advancing mutually beneficial initiatives between Pakistan and the UAE.