The United Arab Emirates (UAE) has announced a rollover of $2 billion in debt due for repayment by Pakistan this month, Prime Minister Shehbaz Sharif disclosed during a federal cabinet meeting on Tuesday.

The announcement follows a one-on-one meeting between Prime Minister Shehbaz and UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan. The PM told the cabinet the meeting was “positive and constructive” where both leaders discussed strengthening bilateral ties and boosting investment cooperation.

In televised remarks at the cabinet meeting, the premier thanked the UAE president for the gesture, emphasizing its importance for Pakistan's economic stability. He mentioned that Sheikh Nahyan expressed commitment to investing in Pakistan, assuring that his country would not fall behind in this regard.

H.H. Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates, meets H.E. Muhammad Shehbaz Sharif, Prime Minister of the friendly Islamic Republic of Pakistan, in Rahim Yar Khan city if Pakistan, where they discussed the ways of cooperation and joint work between… pic.twitter.com/ClJ87KY5TL
— UAE Embassy PK (@uaeembassyisb) January 5, 2025

"The UAE president reiterated his country’s commitment to enhancing the longstanding partnership with Pakistan and expressed a desire to swiftly implement investment projects," he stated. He said he also thanked the visiting dignitary for announcing the debt rollover.

PM Shehbaz stressed that Pakistan’s economy was on a path to stabilisation due to collective efforts. He highlighted the government's commitment to transforming Pakistan into a prosperous nation and regaining the country's lost glory, saying, “But this needs a journey of sacrifice, blood, and sweat and nothing short of that.”

He stated that the launch of the homegrown economy initiative necessitated efforts to cut the cost of electricity, calling it an unavoidable step towards improving exports and commerce. He also said that he led a meeting last week to discuss lowering electricity prices with the participation of provincial governments, and that a "comprehensive" meeting would be conducted this week on the matter.

Shehbaz expressed satisfaction with the recent uptick in textile exports and underscored the need for export-led growth and diversification into non-traditional sectors. Highlighting the significance of small and medium enterprises (SMEs) for economic progress, he mentioned a recent meeting to complete the SMEDA Board where some important decisions were also taken. Another meeting on the matter is scheduled for January 15, he added.

The PM shared that Indonesian President Prabowo Subianto is scheduled to visit Pakistan later this month when both sides are likely to discuss strengthening and integration of bilateral cooperation. Both nations will also explore opportunities for cooperation in halal meat and rice exports, as well as the import of edible oil.

The prime minister condemned a recent firing incident in Lower Kurram that injured a deputy commissioner and others, calling it an attempt to sabotage the peace agreement. He expressed hope for the victims' recovery and reiterated the government’s commitment to combatting human smuggling, a practice that has caused significant loss of life and tarnished Pakistan’s reputation globally.

“Regular meetings with the Interior Ministry and other relevant departments are being held to address this grave issue,” he added.