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UAE to invest $20-25 bn in cash-strapped Pakistan

A man selling corn waits for customers along a road as commuters make their way amid heavy smoggy conditions in Lahore on November 22, 2023. AFP
  • The move comes as Pakistan grapples with economic challenges, including a balance of payments crisis and dwindling foreign exchange reserves
  • Pakistan Prime Minister Kakar hailed the signing as a historic milestone that would elevate economic cooperation between the two nations

Abu Dhabi, UAE – The UAE and Pakistan recently sealed a significant deal, potentially injecting between $20 to $25 billion into Pakistan’s struggling economy, according to media reports.

The agreements, covering diverse sectors like energy, ports, food security, and finance, were signed after a meeting between caretaker Prime Minister Anwaarul Haq Kakar and UAE President Sheikh Mohammed bin Zayed Al Nahyan in Abu Dhabi.

Although the specific value of the Memorandums of Understanding (MoUs) was not disclosed, reports said they expected substantial investment by the UAE in Pakistan. The move comes as Pakistan grapples with economic challenges, including a balance of payments crisis and dwindling foreign exchange reserves.

Prime Minister Kakar hailed the signing as a historic milestone that would elevate economic cooperation between the two nations, fostering socio-economic growth in Pakistan. The bilateral meeting also involved discussions between Sheikh Mohammed and Chief of Army Staff General Syed Asim Munir.

Kakar expressed gratitude for the UAE’s steadfast support in the economic and financial realms, while reaffirming Islamabad’s backing of the UAE’s Presidency of the COP2.