Pakistan has formally requested the United Arab Emirates (UAE) to roll over a $3 billion loan before its maturity. According to sources in the Ministry of Finance, Prime Minister Shehbaz Sharif sent a letter to UAE leadership requesting the rollover of the loan, which is due for repayment in two installments – $2 billion this month and $1 billion in July. The $3 billion loan was deposited with the State Bank of Pakistan in 2021, with $1 billion due in the second week of January and another $1 billion installment due in the third week of January. Sources confirmed that the government is seeking a rollover for all three installments before their maturity, and it is expected that the roll-over process will be completed on time.
Furthermore, Pakistan has assured the IMF that the UAE will honour the roll-over commitment throughout the loan program. This year, Pakistan expects to roll over a total of $12 billion in loans from the UAE, Saudi Arabia, and China.
Separately, Shehbaz Sharif reiterated that the privatization of loss-making SOEs remains one of the government’s foremost priorities, underscoring that the successful privatization of 75 percent shares of PIA marked the first drop of rain in a broader reform agenda. Chairing a high-level meeting on the affairs of the Privatization Commission at the PM’s House, he directed that the pace of reforms within the Commission be further accelerated to ensure efficiency, transparency and credibility in the privatization process.
Prime Minister Shehbaz Sharif emphasized that the Privatization Commission must be strengthened by inducting the best available talent from the private sector and the market. He categorically instructed that all appointments be carried out in a highly transparent manner. Stressing the need for modern governance practices, he also directed the complete digitization of the Privatisation Commission.
The prime minister further ordered that all privatization projects be subjected to third-party audits conducted by firms of international repute. He also called for significant improvement in the Commission’s public relations and marketing functions to ensure effective communication with stakeholders and the market.
During the meeting, participants were briefed on the ongoing reform initiatives in the Privatization Commission.
The briefing informed that advisers from the market would be hired in key areas including finance, human resources, law, information technology and media management. In addition, consultants specializing in strategy, policy, transactions and the power sector would be engaged to support the Commission’s mandate.
PM Shehbaz Sharif was apprised that the reforms are anchored in strategic discipline, strong governance, enhanced institutional capacity and transparent engagement with stakeholders. The meeting was informed that the privatization of electricity distribution companies (DISCOs) has been planned in two initial batches.