UAE’s $1b lifeline will ease pressure on Pakistan’s economy, boost foreign exchange, say experts

UAE’s $1b lifeline will ease pressure on Pakistan’s economy, boost foreign exchange, say experts

They welcome timely financial assistance as it will avert immediate threat of 'economic default’

Published: Thu 12 Jan 2023, 7:01 PM Last updated: Thu 12 Jan 2023, 7:48 PM

The UAE's investment and financial assistance will help revive Pakistan’s struggling economy which is struggling to avert an immediate threat of ‘an economic default’ in the wake of its shrinking foreign exchange reserves, say experts.

Analysts, economists and executives termed the UAE’s rollover of $2 billion loan and $1 billion additional lending to Islamabad a welcome gesture that will help boost the country's economy which is facing severe challenges due to $30 billion losses in floods last year.

The $3 billion financial assistance, they said, will help stabilise the economy and help forex reserves, in particular the rupee.

Timely support

Samiullah Tariq, head of research and development at Pakistan Kuwait Investment Company, said the financial assistance by UAE will provide much-needed relief to Pakistan's economy. “It will help bridge the gap of gross external financing this year. It will also boost foreign exchange reserves, restore investor confidence and bring economic stability to the country,” Tariq told Khaleej Times on Thursday.

According to a statement from the Prime Minister’s Office, the UAE has agreed to roll over the existing