U.A.E. President Sheikh Mohamed bin Zayed on Thursday agreed to roll over for Pakistan an existing loan of $2 billion and provide a fresh $1 billion loan, Information Minister Marriyum Aurangzeb announced in a posting on Twitter.
The Gulf state’s leader offered the financial support during a meeting with Prime Minister Shehbaz Sharif, who is currently on a two-day official visit to the U.A.E. on the invitation of its president. “His Highness Sheikh Mohamed bin Zayed welcomed Prime Minister Sharif to Abu Dhabi and wished progress and prosperity for Pakistan,” said the information minister, adding that the U.A.E. president had praised the historical relations between the two nations and the valuable contributions made by the Pakistani community in his country. In response, she wrote, P.M. Sharif thanked the U.A.E. president for inviting him to the brotherly country.
“The two leaders discussed the fraternal relations existing between Pakistan and the U.A.E.; explored ways and means to further strengthen these ties, especially in the fields of trade, investment and energy,” read the statement. It said President Zayed had also agreed to a state visit to Pakistan at the prime minister’s invitation.
The financial relief announced by the U.A.E. is much-needed in Pakistan, where the State Bank of Pakistan reported on Thursday that its foreign exchange reserves had declined to $4.3 billion, barely enough to cover three weeks of average imports. The U.A.E.’s existing loans to Pakistan were set to be repaid February and March and the rollover grants a brief reprieve, as the country gears up to revive a stalled IMF bailout so the global lender can release the next tranche of $1.1 billion.