Aaj.tv Logo

UAE to invest $1b in Pakistani companies

06 Aug, 2022
<p>Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan met Prime Minister Shehbaz Sharif during the latter’s visit to the UAE. <a rel="noopener noreferrer" target="_blank" class="link--external" href="https://twitter.com/PakPMO">@PakPMO</a>/Twitter/File</p>

Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan met Prime Minister Shehbaz Sharif during the latter’s visit to the UAE. @PakPMO/Twitter/File

DUBAI: The United Arab Emirates intends to invest $1 billion in Pakistani companies across various sectors, the state news agency (WAM) reported citing an official source in Abu Dhabi.

The UAE is keen to continue cooperation with Pakistan “in various fields, which include gas, energy infrastructure, renewable energy, health care,” the agency added.

Pakistan and the UAE have agreed to boost bilateral economic cooperation in the fields of trade, energy, infrastructure, and petroleum during Prime Minister Shehbaz Sharif’s visit to the Gulf country.

The development comes as the Pakistani rupee appreciated in the stock market after more than a week of the slump in July. But, the situation changed in the market this week when the rupee appreciated by Rs17.38 against the greenback owing to changing political and economic situations.

Pakistan met the last requirement of the International Monetary Fund for the combined seventh and eighth review of the $6 billion loan facility, with the increase in the petroleum development levy on July 31, the global lender’s representative to the country said on Tuesday.

The development was expected to pave the way for the release of the first tranche of over $1 billion.

Moreover, the Election Commission of Pakistan’s ruling on the PTI prohibited funding case after more than seven years also impacted the market sentiment over political stability. “The PTI took prohibited funding from foreign companies and hid 13 accounts out of the total 34 from where it received money,” Chief Election Commissioner Sikandar Sultan Raja, who led a three-member bench of the Election Commission of Pakistan, had said.

Experts have welcomed such appreciation in the rupee value, however, they were also asking about the consistency of such a situation.

“I think the big news was that IMF said Pakistan has met all our [prior] conditions, which means that people had confidence that the global tranche would come,” industrialist Zubair Motiwala had told Aaj News. “But, I fear that would it last for a longer period?” he said, “we need political stability. This is an examining position, however, it is better for Pakistan, it should further go down. The realistic value stands from 192 to 200.”

Chief of Army Staff General Qamar Javed Bajwa contacted the authorities of the United Arab Emirates and Saudi Arabia to discuss the IMF programme on Friday, sources privy to the matter said.

Saudi Arabia and the United Arab Emirates have reportedly assured the army chief of full cooperation in this regard.

A few days earlier, Nikkei Asia reported that Gen Bajwa had appealed to the United States to help Islamabad secure an early dispersal of $1.2 billion in funds under the IMF programme to avert the risk of debt default.

Gen Bajwa requested the White House to urge the international lender to expedite the bailout process and immediately release the funds that Pakistan expects to receive under the resumed loan programme to get the country out of the economic crisis.