A sigh of relief for the Pakistan's crippling economy, the United Arab Emirates (UAE) has committed to invest an additional $10 billion in the country.

The announcement was made following a high-level meeting between Prime Minister Shehbaz Sharif accompanied by the Deputy Prime Minister/Foreign Minister Muhammad Ishaq Dar, Minister for Commerce Jam Kamal Khan, Minister for Defence Khawaja Muhammad Asif and Special Assistant to Prime Minister Syed Tariq Fatemi. , and the UAE President, Sheikh Mohammed bin Zayed Al Nahyan, on Thursday in Abu Dhabi.

During the one-on-one discussion, which took place after a round table conference, both leaders engaged in comprehensive talks on matters of mutual interest, exploring investment opportunities in Pakistan, and deliberating on global and regional issues.

Prime Minister Shehbaz Sharif and President of UAE Sheikh Mohamed bin Zayed Al Nahyan meet in Abu Dhabi on May 23, 2024. — PID

Both leaders exchanged views on other issues of mutual interest including regional and global developments. The Prime Minister reiterated his invitation to the UAE President for an official visit to Pakistan. The UAE President accepted the invitation.

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The UAE's investment promise follows Saudi Arabia's pledge to expedite $5 billion in investment, as Pakistan seeks to strengthen economic ties with Gulf states.

The country's foreign exchange reserves stand at $14.5 billion, and the government is working to secure a fresh IMF programme to support economic stability.

Pakistan's economy has stabilized after completing the last IMF programme, with inflation coming down to 17% in April from a record high of 38% last May.

However, the country still faces challenges including a high fiscal shortfall and stagnating growth, which is expected to be around 2% this year.

The government is seeking at least $6 billion in additional financing from the IMF under the Resilience and Sustainability Trust, but the Fund has conditionalized the next bailout package on the presentation of an aligned budget and parliamentary approval