UAE Allocates $10 Billion to Invest in Pakistan

The Pakistani Prime Minister's Office announced that the UAE pledged Thursday to pump investments worth $10 billion into economic sectors in Pakistan.

Pakistan is seeking to attract foreign investments to support its $350 billion economy, which suffers from high inflation rates and declining growth at a time when it is implementing a strict package of reforms in cooperation with the International Monetary Fund.

The agreement announced by the Emirates News Agency (WAM) came after talks held by President Mohammed bin Zayed Al Nahyan with Pakistani Prime Minister Shehbaz Sharif during his visit to the Emirates.

A statement issued by the Pakistani Prime Minister's Office said, "The President of the United Arab Emirates, Sheikh Mohammed bin Zayed Al Nahyan, affirmed the UAE's support (for Pakistan) in all circumstances and pledged to invest $10 billion in several sectors."

The statement added that Sherif stressed strengthening strategic partnerships in areas including information technology, renewable energy and tourism.

Pakistan needs foreign investment to boost its economy and support its currency reserves to meet increasing external debt obligations. Talks are underway with the International Monetary Fund to reach a long-term loan agreement that could reach $8 billion.

A team from the International Monetary Fund is visiting Pakistan to discuss the country's budget and economic recovery policies after the country succeeded in completing a short-term loan program worth $3 billion last month.