UAE Plans to Invest $1 Billion in Pakistan
The UAE plans to invest $1 billion in Pakistani enterprises across multiple sectors, according to state news agency (WAM), citing an official source in Abu Dhabi.
The UAE is eager to maintain cooperation with Pakistan “in a variety of industries, including gas, energy infrastructure, renewable energy, and health care,” according to the agency.
The decision is anticipated to boost investor confidence in the country, which has been plagued by shrinking foreign exchange reserves and a falling rupee. However, as the IMF bailout scheme becomes clearer, confidence has improved, and the stock market gained 670 points on Friday.
IMF and Diplomatic Sources
According to IMF and diplomatic sources, the IMF will likely begin the process of distributing the seventh and eighth tranches of a loan package for Pakistan later this week.
The IMF’s summer break concludes on August 12. “Technically, the IMF Executive Board meeting might happen before August 20 if proposals are given to the board by August 6,” one of the people stated.
In 2019, Pakistan and the IMF agreed the $6 billion bailout agreement known as the Extended Fund Facility (EFF). However, the transfer of a $1.17 billion (seventh and eighth) tranche has been halted since early this year, when the IMF expressed concerns about Pakistan’s compliance with the agreement.
Executive Board Meeting
The most recent executive board meeting was held on February 2 of this year. The IMF obtained a staff-level agreement on the combined seventh and eighth reviews for the EFF on July 13, which must be authorised by the board before funds are issued.
According to the sources, Pakistan attempted to obtain the board’s consent before the summer recess (August 1 to 12). It dispatched multiple officials to Washington to encourage the Fund. Army Chief Qamar Bajwa called US Deputy Secretary of State Wendy Sherman earlier this week to seek Washington’s approval for the package. “However, the Pakistanis were advised that a board meeting before the recess is not possible because a lot of members are already on leave,” one of the sources said.