The UAE has pledged $10 billion to invest in promising sectors of Pakistan’s economy.
The announcement was made today after a meeting between President Sheikh Mohammed and Pakistan Prime Minister Shehbaz Sharif in Abu Dhabi, the Ministry of Investment said.
Foreign Minister Shehbaz Sharif arrived in the UAE on a working visit earlier in the day.
During their meeting, Sheikh Mohammed and Sharif discussed opportunities to strengthen cooperation in areas including economy, trade and development “to serve shared interests and strengthen the two countries’ vision for sustainable economic development and prosperity,” state news agency Wam reported.
Sharif affirmed his country’s determination to strengthen ties with the UAE and expand economic, trade and investment cooperation, as well as learn from the UAE’s development.
More than one million Pakistani nationals live in the UAE, making it the second largest expatriate community.
The two countries have a long-standing relationship dating back to the birth of Emirates Airlines. Pakistan was one of the first countries to recognise the UAE after its creation in December 1971.
Pakistan also played a key role in helping the UAE realize its aviation dreams. In 1985, as Dubai sought to develop its own flagship airline, Emirates, Pakistan International Airlines offered to help.
PIA supported Emirates and showed its gratitude by leasing two of its aircraft to the startup and selecting Karachi as the destination for its maiden flight.
In March, Pakistan’s newly elected parliament approved Sharif as prime minister. Last month, the International Monetary Fund board approved $1.1 billion in financing for Pakistan, the latest part of a $3 billion deal that Islamabad signed with the multilateral financial institution last year.
Pakistan secured an IMF loan last year to avoid defaulting on its debt. To secure the deal, it agreed to raise taxes and aggressively hike interest rates to fight inflation.
The IMF noted that Pakistan has made several improvements since last year’s deal, including a projected economic growth rate of 2% for the current fiscal year. It also expects inflation to return to the central bank’s target and growth to continue to strengthen over the medium term.
Updated: May 23, 2024, 4:34 p.m.
