Pakistan premier says UAE extends $2B loan, offers $1B more

Jan 11, 2023, 1:05 PM | Updated: Jan 12, 2023, 7:12 am
In this handout photograph from the United Arab Emirates' Presidential Court, Pakistan's Prime Mini...

In this handout photograph from the United Arab Emirates' Presidential Court, Pakistan's Prime Minister Shahbaz Sharif, left, meets with Emirati leader and Abu Dhabi ruler Sheikh Mohammed bin Zayed Al Nahyan at Al Shati Palace in Abu Dhabi, United Arab Emirates, Thursday, Jan. 12, 2023. Pakistan's prime minister said Thursday that the United Arab Emirates agreed to extend a $2 billion loan to his country and provide an additional $1 billion as his nation struggles to recover from devastating floods this summer. (Hamad Al Kaabi/UAE Presidential Court, via AP)

(Hamad Al Kaabi/UAE Presidential Court, via AP)

DUBAI, United Arab Emirates (AP) — Pakistan’s prime minister said Thursday that the United Arab Emirates agreed to extend a $2 billion loan to his country and provide an additional $1 billion as his nation struggles to recover from devastating floods this summer and a dire economic crisis.

Prime Minister Shahbaz Sharif’s office made the announcement after he met with the leader of the UAE, Abu Dhabi ruler Sheikh Mohammed bin Zayed Al Nahyan. It said Sheikh Mohammed agreed to the loan extension and the new loan, desperately needed as foreign currency reserves in the nation have plummeted to $5.5 billion — enough money for just under a month of imports.

“Both sides agreed to deepen the investment cooperation, stimulate partnerships and enable investment integration opportunities between the two countries,” Sharif’s office said.

The Emirates did not immediately acknowledge the rollover of the loan and the granting of the additional billion. It said the meeting at Abu Dhabi’s Al Shati Palace saw the two leaders discuss “the historical relations between the UAE and Pakistan and ways to enhance joint cooperation and expand its horizons in a way that serves the mutual interests of the two countries.”

Sharif’s visit to the UAE marks his third since becoming premier last April. The seven sheikhdoms of the Emirates are home to some 1.7 million Pakistanis, many manual laborers that power its economy and send money back to their nation.

Stung by food and fuel increases caused by Russia’s war on Ukraine, Pakistan also has been struggling to cut into its government spending as well as inflation grows. That’s worsened the economic crisis gripping a country where authorities have ordered malls to shut earlier to save on energy costs. The International Monetary Fund released a crucial tranche of $1.1 billion to Pakistan in August but talks have stalled since.

Saudi Arabia earlier this week floated investing $10 billion in Pakistan and increasing its deposits in the State Bank of Pakistan to $5 billion there.

On Wednesday, Sharif said several countries and some of the world’s institutions have pledged $9.7 billion to help Pakistan rebuild from the summer’s catastrophic flood that killed 1,739 people. That’s far above the pledges — which have gone unfulfilled in other similar international conferences.

The floods destroyed more than 2 million homes and caused more than $30 billion in damage.

___

Associated Press writer Munir Ahmed in Islamabad contributed to this report.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

People work at a construction site, Tuesday, Jan. 24, 2023, in Miami. On Tuesday, the Labor Departm...
Associated Press

US workers’ pay slowed in the final quarter of 2022

WASHINGTON (AP) — Pay and benefits for America’s workers grew at a healthy but more gradual pace in the final three months of 2022, a third straight slowdown, which could help reassure the Federal Reserve that wage gains won’t fuel higher inflation. Wages and benefits, such as health insurance, grew 1% in the October-December quarter […]
1 day ago
Maximino Vertiz Quintanilla repairs a customer's baby Jesus statue inside his store in preparation ...
Associated Press

Broken baby Jesus statues flood restorers ahead of feast day

MEXICO CITY (AP) — It is Maximinio Vertiz’ busy season. Dozens of beloved but worn and broken baby Jesus figurines will pass through this 49-year-old craftsman’s hands, restoring them in time for their annual pilgrimage to church for a Candlemas blessing. Holding a putty knife with a steady hand, Vertiz went about this meticulous task […]
1 day ago
substation...
Associated Press

Puyallup man accused in substation vandalism is released from custody

A federal judge issued the order for Matthew Greenwood, 32, after renewed efforts by his attorney to get Greenwood into a drug-treatment facility.
1 day ago
FILE - A sign marks an entrance to the Robert F. Kennedy Department of Justice Building in Washingt...
Associated Press

Child welfare algorithm faces Justice Department scrutiny

PITTSBURGH (AP) — The Justice Department has been scrutinizing a controversial artificial intelligence tool used by a Pittsburgh-area child protective services agency following concerns that it could result in discrimination against families with disabilities, The Associated Press has learned. The interest from federal civil rights attorneys comes after an AP investigation revealed potential bias and […]
1 day ago
FILE - A worker with the Pebble Mine project digs in the Bristol Bay region of Alaska near the vill...
Associated Press

Feds use rare veto to block Alaska copper, gold mine plan

JUNEAU, Alaska (AP) — The U.S. Environmental Protection Agency on Tuesday effectively vetoed a proposed open-pit copper and gold mine in a remote region of southwest Alaska that is a trove of minerals coveted by mining interests but that also supports the world’s largest sockeye salmon fishery. The move by the agency, heralded by Alaska […]
1 day ago
Associated Press

American Express launches products for small businesses

NEW YORK (AP) — American Express is launching a suite of financial service products for small businesses as it aims build up its presence in the small business sector. The services, called Business Blueprint, stem from the credit card giant’s acquisition of fintech Kabbage in 2020. American Express had been offering small business lines of […]
1 day ago

Sponsored Articles

safety from crime...

As crime increases, our safety measures must too

It's easy to be accused of fearmongering regarding crime, but Seattle residents might have good reason to be concerned for their safety.
Comcast Ready for Business Fund...
Ilona Lohrey | President and CEO, GSBA

GSBA is closing the disparity gap with Ready for Business Fund

GSBA, Comcast, and other partners are working to address disparities in access to financial resources with the Ready for Business fund.
SHIBA WA...

Medicare open enrollment is here and SHIBA can help!

The SHIBA program – part of the Office of the Insurance Commissioner – is ready to help with your Medicare open enrollment decisions.
Lake Washington Windows...

Choosing Best Windows for Your Home

Lake Washington Windows and Doors is a local window dealer offering the exclusive Leak Armor installation.
Anacortes Christmas Tree...

Come one, come all! Food, Drink, and Coastal Christmas – Anacortes has it all!

Come celebrate Anacortes’ 11th annual Bier on the Pier! Bier on the Pier takes place on October 7th and 8th and features local ciders, food trucks and live music - not to mention the beautiful views of the Guemes Channel and backdrop of downtown Anacortes.
Swedish Cyberknife Treatment...

The revolutionary treatment of Swedish CyberKnife provides better quality of life for majority of patients

There are a wide variety of treatments options available for men with prostate cancer. One of the most technologically advanced treatment options in the Pacific Northwest is Stereotactic Body Radiation Therapy using the CyberKnife platform at Swedish Medical Center.
Pakistan premier says UAE extends $2B loan, offers $1B more