UAE’s decision to invest one billion dollars in Pakistani companies

ISLAMABAD, Aug 05 (Alliance News): The United Arab Emirates has decided to invest one billion dollars in companies in various sectors in Pakistan.

According to details of UAE Embassy here and the official news agency WAM said in a report from the government sources of Abu Dhabi that the United Arab Emirates has expressed its intention to invest one billion dollars in companies in various sectors of Pakistan.

The report said that the UAE will continue to cooperate with Pakistan in various sectors, including gas, energy infrastructure, renewable energy and health sector.

This move will help restore investor confidence in the country and help stabilize the depreciating rupee along with increasing foreign exchange reserves.

After the clear announcement of the IMF’s program in Pakistan, investors’ confidence increased and the stock market rose by 670 points on Friday.

IMF and diplomatic sources told Dawn that the IMF is disbursing the seventh and eighth tranches of the loan package to Pakistan by the end of this week.

Sources said that this period of the IMF is ending on August 12, if the proposals are sent before August 20, then technically the meeting of the Executive Board of the IMF can be held before August 20.

He said Pakistan had tried to get the board’s approval before the break between August 1 and August 12 and several officials had been sent to Washington to convince the IMF for it.

He said that at the beginning of this week, Army Chief General Qamar Javed Bajwa called US Deputy Secretary of State Wendy Sherman to get US support for the package.

He said that “but the Pakistanis were told that it is not possible to hold the board meeting before the break because many members of the board are on vacation”.

Further sources familiar with the matter said that the IMF wants Pakistan’s help and hence there is no delay from their side but it is not possible to speed up the process.

He said that the IMF had asked Pakistan to ensure from Saudi Arabia and the United Arab Emirates that they would give the expected loan of $4 billion after the release of the loan tranche from the IMF.

A senior diplomatic official said that “Pakistan has been assured by two friendly countries, so we do not see any problem for the approval of the board”.

Another official said that Pakistan has been warned not to allow the political situation to deteriorate, adding that the government has been told that protests and demonstrations by the opposition or deals with PTI leaders by the government. can have negative effects.

The American media pointed out with reference to the call made by General Qamar Javed Bajwa to the American diplomat and military officials that “Pakistan’s army has directly ruled for more than half of the country’s 75-year history and with the United States have worked together and been close allies in the war on terror against al-Qaeda’.

Diplomatic sources said that “the phone call has helped, but the US cannot stop the IMF from implementing its method”.

In July, the IMF said it would increase the bailout package from $6 billion to $7 billion if approved by the executive board, reports said. Generally considered a routine action’.

Another report stated that the restoration of the IMF bailout package would help Pakistan and make it easier for other world institutions to deal with Pakistan.

The report pointed out that since Imran Khan was removed from the prime ministership, Pakistan’s currency has reached its worst level in history due to uncertainty regarding the IMF loan.

He said that the continuous fall in the currency has spread anxiety in the business community and the increase in the prices of goods has made Shahbaz Sharif’s government unpopular.

It may be noted that Pakistan and the IMF had signed a bailout agreement worth $6 billion on the Extended Fund Facility (EFF) in 2019, but when the IMF expressed concern about Pakistan’s compliance with the agreement, The issuance of the $1.7 billion (seventh and eighth) tranches was shelved earlier this year.

The last executive board consultation was held on February 2 this year. On July 13, the IMF reached a staff-level agreement on the joint seventh and eighth reviews for the EFF, which must be approved by the board before an tranche can be issued

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