By our correspondent
ISLAMABAD: In a move aimed at easing Pakistan’s mounting financial pressures, the government announced that the United Arab Emirates would acquire shares in the Fauji Foundation, part of a broader effort to support the country’s $1 billion repayment obligations.
Federal Minister for Finance Ishaq Dar confirmed that, alongside the share purchase, a rollover of $2 billion in debt had been assured, providing Islamabad with critical breathing space amid ongoing economic challenges.
The developments followed the UAE President Sheikh Mohammed bin Zayed Al Nahyan’s official and private visit to Pakistan on 26 December, which combined formal diplomatic engagements with informal interactions, including a hunting trip in Rahim Yar Khan.
During the visit, President Al Nahyan met with Prime Minister Shahbaz Sharif at Nur Khan Air Base, where discussions reportedly focused on strengthening bilateral cooperation, economic collaboration, and investment opportunities.
Dar highlighted that the UAE’s agreement to acquire Fauji Foundation shares reflected the deepening trust and strategic partnership between the two countries, signaling a new phase of financial and economic collaboration.
He emphasized that the $2 billion debt rollover would stabilize Pakistan’s immediate fiscal position and allow the government to focus on domestic economic reforms without the immediate pressure of debt repayment.
The combined measures of share acquisition and debt rollover are expected to provide a crucial lifeline for Islamabad, which has been navigating a complex economic landscape marked by currency fluctuations, rising debt, and urgent funding needs.
