The United Arab Emirates (UAE) has pledged a whopping $10 billion investment in various economic sectors in Pakistan, marking a significant boost for the South Asian nation’s struggling economy. The announcement came after a meeting between Pakistani Prime Minister Shehbaz Sharif and President Sheikh Mohamed bin Zayed Al Nahyan during Sharif’s two-day visit to the UAE.
The investment commitment, confirmed by the Emirati state news agency (WAM), underscores the UAE’s support for Pakistan in its efforts to revitalize its economy, which has been grappling with high inflation and sluggish growth. Pakistan has been actively seeking foreign investment to bolster its $350 billion economy and strengthen its currency reserves to meet mounting external repayment obligations.
In a statement released by Pakistan’s Prime Minister’s Office, it was revealed that President Sheikh Mohamed bin Zayed Al Nahyan assured Pakistan of the UAE’s unwavering support and pledged to invest $10 billion in multiple sectors. While the statement did not specify the exact areas of investment, Sharif emphasized the importance of enhancing strategic partnerships, particularly in information technology, renewable energy, and tourism.
Pakistan’s urgent need for foreign investment has been further underscored by its ongoing negotiations with the International Monetary Fund (IMF) to secure a long-term bailout package, estimated to be as high as $8 billion. The country recently completed a short-term $3 billion IMF bailout program and is now in discussions with an IMF team to outline budget and economic recovery policies.
The $10 billion investment pledge from the UAE is a welcome development for Pakistan, as it seeks to navigate through challenging economic reforms and secure much-needed financial support to stabilize its economy. The infusion of funds from the UAE is expected to provide a significant boost to key sectors and help drive economic growth in Pakistan.
The announcement of the investment commitment has generated optimism and excitement in Pakistan, with many viewing it as a vote of confidence in the country’s economic potential and future prospects. The partnership between Pakistan and the UAE is set to deepen further as both countries work together to harness the benefits of the substantial investment and foster greater economic cooperation.
As Pakistan continues its efforts to attract foreign investment and strengthen its economic resilience, the $10 billion pledge from the UAE serves as a significant milestone in the country’s journey towards sustainable growth and prosperity. With strategic partnerships and investments in key sectors, Pakistan is poised to unlock new opportunities and drive progress in its quest for economic stability and development.