Pakistan has announced that the United Arab Emirates is set to acquire a stake in the Fauji Foundation as part of expanding economic cooperation between the two countries, a development that is expected to help ease Pakistan’s external financing pressures at a critical time for the economy.
Deputy Prime Minister and Foreign Minister Ishaq Dar shared the details on Saturday while addressing a press conference on the annual performance of the Ministry of Foreign Affairs. He said the planned investment could play a significant role in addressing Pakistan’s near-term financial obligations and strengthening confidence among international partners.
According to Dar, the proposed UAE investment may help settle a liability of around $1 billion, while discussions are also underway to roll over an additional $2 billion loan. These measures, he noted, would provide much-needed breathing space for Pakistan as it manages balance-of-payments pressures and works to stabilize its external accounts.
The foreign minister said the development followed a recent visit by the president of the United Arab Emirates to Pakistan and reflected growing financial and diplomatic support from key regional partners. He described the engagement as part of a broader effort to deepen bilateral economic ties and attract long-term investment into strategic sectors of the economy.
Dar also expressed gratitude to Saudi Arabia, the United Arab Emirates, and China for their continued financial assistance, including loans and support arrangements that have helped shore up Pakistan’s financial stability over the past year. He said the backing from these countries had been instrumental in navigating challenging economic conditions and maintaining macroeconomic stability.
While discussing Pakistan’s foreign policy outlook, Dar said the country’s “proactive, principled and firm” stance on major global issues had strengthened its international standing. Although he did not elaborate on specific policy positions, he suggested that Pakistan’s diplomatic engagement had improved its relationships with both regional and global partners.
On regional diplomacy, the foreign minister highlighted a noticeable improvement in relations with Bangladesh, describing the past year as a period of “major thaw” between the two countries. He said his recent visit to Dhaka marked an important step toward rebuilding ties and fostering mutual understanding after years of limited engagement.
During the visit, Dar held meetings with Bangladesh’s chief executive, foreign minister, senior advisers, and a wide range of political stakeholders. These included discussions with former prime minister Khaleda Zia, representatives of Jamaat-e-Islami, and members of student organizations. He said the meetings helped create a positive environment and opened channels for broader engagement.
“An environment of goodwill has been created, and following the February elections, we will further engage with Bangladesh,” Dar said, indicating that Pakistan intends to build on recent diplomatic momentum once the political process in Dhaka is completed.
The foreign minister also reiterated Pakistan’s position on Gaza, reaffirming Islamabad’s support for a peaceful resolution of the Palestinian issue. He emphasized Pakistan’s longstanding stance in favor of dialogue, humanitarian relief, and a just settlement based on international law, while calling for restraint and the protection of civilian lives.
The planned UAE stake in the Fauji Foundation is being viewed as a significant signal of confidence in Pakistan’s economy and institutions. Analysts note that such strategic investments not only help address immediate financing needs but can also pave the way for deeper economic partnerships, technology transfer, and long-term capital inflows.
As Pakistan continues to navigate fiscal and external challenges, the government has increasingly relied on diplomatic engagement and strategic partnerships to secure financial support. The latest announcement underscores the role of foreign policy in supporting economic stability and highlights the importance of sustained cooperation with key regional allies in shaping Pakistan’s economic trajectory.
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