UAE to invest $ 1 billion in CPEC, non-CPEC projects in Pakistan

Islamabad: The United Arab Emirates (UAE) is planning to invest one billion US dollars in Pakistan’s economic and investment sectors in the China-Pakistan Economic Corridor (CPEC)’s Special Economic Zones (SEZs) and non-CPEC projects.

The UAE investment will likely be channeled to key sectors including gas, energy infrastructure, renewable energy, healthcare, biotechnology, agriculture technology, logistics, digital communications, e-commerce and financial services, official reports in Pakistan and government-run media reports in UAE confirmed.

The UAE is Pakistan’s largest trading partner in the Middle East and a major source of investments and remittances.

The trade volume between the two countries amounted to US $ 8.19 billion in 2019. Both countries also have significant investments in various sectors in each other’s economies such as real estate.

CPEC SEZs in Pakistan have been attracting investment from the Chinese companies and other friendly countries. Pakistani government has promised favourable environment for the investors.

The UAE move aims at exploring new investment opportunities, expanding bilateral economic relations and to enhance mutual cooperation in projects covering various sectors of the economy.

The move is expected to help in revival of investor sentiment in the country. As a package by the International Monetary Fund (IMF) becomes clearer, the sentiment has improved.

According to a report, the IMF is likely to start the process for releasing the seventh and eighth tranches of a loan programme for Pakistan within days.

Pakistan and the IMF signed the US $ 6 billion bailout accord – Extended Fund Facility (EFF) – in 2019. But the release of a US $1.17 billion (seventh and eighth) tranche has been on hold since earlier this year, when the IMF expressed concern about Pakistan’s compliance with the deal.

China has also been helpful and has so far rolled over US $4.3 billion in debt, including US $2.3 billion in commercial loans and US $2 billion in deposits.