Following the Geneva Conference, where the world community pledged to provide financial assistance of over $9 billion for the recovery of the flood hit victims in Pakistan, another good news has emerged from the United Arab Emirates (UAE) which has announced to rollover Pakistan’s $2 billion debt and $1 billion extra loan for the cash-strap country.
The announcement was made by UAE President Sheikh Mohammad bin Zayed Al-Nahyan at a meeting with Prime Minister Shehbaz Sharif who arrived in the Arab country on a two-day official visit earlier in the day. Sheikh Mohammad bin Zayed welcomed the Pakistani premier to Abu Dhabi and wished progress and prosperity for Pakistan. He praised the historical relations between the two nations and the valuable contributions made by the Pakistani community in the UAE.
The rollover of the existing $2 billion debt from the Gulf country in much-needed financial help would stabilise Pakistan’s foreign exchange reserves.
Pakistan, whose foreign exchange reserves which plunged below $5 billion was in dire need of financial help from friendly countries and donors in the wake of the devastation caused by the recent floods in the country.
Before this, there were rumours that the country is soon going to default but the Geneva Conference, where Pakistan managed to get pledges from the world more than it expected and the recent rollover and announcement of fresh $1 billion will help Islamabad in increasing its plunging foreign reserves.
One should not forget the recent visits of the chief of the army staff General Asim Munir to Saudi Arabia and UAE, where he met Crown Prince Mohammad bin Salman and President Sheikh Mohammad bin Zayed Al-Nayahan, who assured their utmost support for Pakistan.
There are more good news for Pakistan in the pipeline, as the KSA has also announced that it is considering increasing its investment in Pakistan up to 10 billion dollars and safe deposit with the SBP up to $5 billion.
