In a significant move aimed at bolstering economic ties and fostering development, Pakistan and the United Arab Emirates (UAE) have inked a historic investment pact totalling more than three billion dollars. The agreement, signed on the sidelines of the World Economic Forum in Davos, Switzerland, encompasses cooperation in railways, economic zones and infrastructure development.
In our view, this marks yet another significant milestone in the ongoing efforts led by the Special Investment Facilitation Council (SIFC) to attract investments to the country. The UAE has consistently proven to be a reliable friend and partner for Pakistan. Notably, the recent rollover of a two-billion-dollar loan for an additional year exemplifies the depth of the bilateral relationship. The newly signed investment pact underscores the UAE’s commitment to aiding Pakistan during its challenging economic situation, reflecting the strategic partnership between the two nations. While the signed agreement holds immense promise, it is imperative that the proposed projects and initiatives are not confined to paperwork but materialize on the ground. To ensure the success of this investment, sustained engagement with the UAE and effective project management will be crucial. Both nations must work hand in hand to transform the vision outlined in the pact into tangible and beneficial outcomes.
The recent developments on the economic front paint an optimistic picture for Pakistan. The State Bank’s publication of economic data for the first half of FY24 reveals encouraging trends, according to which the country has achieved a current account surplus of $397 million for the second consecutive month, significantly reducing the six-month deficit to $831 million from $3.6 billion in the previous fiscal period. Foreign Direct Investment (FDI) inflows have surged by 35%, reaching $863 million, a substantial increase from $640 million in the corresponding period. The positive momentum in economic indicators should not be seen as a transient success but as a foundation to be built upon. Emphasis should be placed on enhancing the productivity of critical sectors such as agriculture, industries, and information technology. By focusing on these sectors, we can achieve self-reliance, stimulate growth, and generate employment opportunities for burgeoning population.
