In a significant development, Prime Minister Shehbaz Sharif announced on Tuesday that the United Arab Emirates (UAE) has agreed to roll over a $2 billion loan that was due for repayment in January. The announcement was made during a federal cabinet meeting, where the prime minister shared details of his recent meeting with UAE President His Highness Sheikh Mohammed bin Zayed Al Nahyan.

PM Shehbaz revealed that during their meeting on Sunday in Rahim Yar Khan, Sheikh Mohammed bin Zayed assured him of further investments in Pakistan. “The UAE President deferred the repayment of the $2 billion loan, which was due in January,” the prime minister said.

According to a statement from the Prime Minister’s Office (PMO), the two leaders discussed a range of issues, including economic collaboration, regional stability, climate change, and mutual interests on the global stage. The UAE, a historic ally and key investor in Pakistan, reaffirmed its commitment to strengthening bilateral ties.

PM Shehbaz also instructed Deputy Prime Minister Ishaq Dar to enhance business relations with the UAE to further boost economic cooperation.

Addressing the ongoing energy crisis, PM Shehbaz emphasized the need to reduce electricity prices, stating that both federal and provincial governments must work together to bring down energy costs. “Unless the cost of energy is reduced, our industry and exports cannot grow,” he said.

The prime minister informed the cabinet that the government has devised 2-3 options to lower electricity prices, which will be implemented soon. However, he acknowledged that negotiations with the International Monetary Fund (IMF) would be necessary to address the issue.

Pakistan is currently under a $7 billion, 37-month loan programme with the IMF, signed in July last year. The next review by the Washington-based lender is scheduled for February. PM Shehbaz urged authorities to address the revenue shortfall and meet IMF targets to ensure the continuation of the programme.