Pakistan welcomes UAE decision to extend repayment of $2 billion loan

Pakistan's Foreign Minister, Shah Mahmood Qureshi (left) meets UAE's Minister of Foreign Affairs and International Cooperation, Sheikh Abdullah bin Zayed Al Nahyan in Abu Dhabi on April 19, 2021. (Photo courtesy: WAM)
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Updated 20 April 2021
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Pakistan welcomes UAE decision to extend repayment of $2 billion loan

  • Decision was conveyed to Foreign Minister Shah Mahmood Qureshi during his visit to the Gulf state
  • Analysts say the rollover will strengthen the country’s foreign reserves and improve investor confidence

KARACHI: Pakistan welcomed on Tuesday an extension of the repayment period of a $2 billion “aid loan” from the Abu Dhabi Fund of the United Arab Emirates.

Pakistan sought financial assistance from the UAE and Saudi Arabia after Prime Minister Imran Khan won the 2018 general elections, as the country faced a significant balance of payment crisis when the two Arab states came to its rescue and shored up its foreign currency reserves.

The United Arab Emirates had earlier set April 19, 2021 as the repayment deadline.

The decision of its extension was conveyed to Pakistani Foreign Minister Shah Mahmood Qureshi by his UAE counterpart Sheikh Abdullah bin Zayed Al-Nahyan during a meeting in Abu Dhabi. Qureshi thanked his host for the “goodwill gesture” and described it as a sign of growing bilateral relations between the two countries.

“We greatly appreciate the UAE’s continued support and cooperation. The UAE’s decision to roll-over the USD 2 billion deposit by the Abu Dhabi Fund, conveyed during Foreign Minister Shah Mahmood Qureshi’s just concluded visit to the UAE is yet another manifestation of the close cooperative relations between the two countries,” Pakistan’s foreign office spokesperson, Zahid Hafeez Chaudhri, said in a statement.

Experts say that had the deadline not been extended it would have put the country’s foreign exchange reserves under pressure.

“Pakistan had to repay $2 billion to the UAE this year which would have put pressure on our foreign exchange reserves,” senior economist Muzzamil Aslam told Arab News. “This rollover will help the country maintain its reserves at $23 billion.”

“The financial assistance Pakistan received from the UAE in 2019 made it possible for the country to meet its international obligations,” Aslam said.

He added that coupled with an upward trend in remittance inflows from Saudi Arabia and the UAE, this measure would further strengthen investor confidence and improve the country’s ratings to produce better macroeconomic results in the coming days.

Pakistan needs $25 billion in long term financing during the April 2021 to March 2022 period, according to recently released documents by the International Monetary Fund. The country needs about $17 billion to amortize debt to multilateral and bilateral official and commercial creditors.

To narrow the financing gap, Pakistan has secured rescheduling commitments from bilateral and multilateral partners, including $10.8 billion from China, $2 billion from the UAE, $2.8 billion from the World Bank, $1.1 billion from the Asian Development Bank and $1 billion from the Islamic Development Bank.

Crucially, key bilateral creditors have maintained their exposure to Pakistan in line with program financing commitments.

Pakistan has also benefitted from the temporary suspension of debt service to official bilateral creditors provided under the G20 Debt Service Suspension Initiative.


In Pakistan’s Bannu, people start their day with a sugar rush

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In Pakistan’s Bannu, people start their day with a sugar rush

  • While much of Pakistan favors savory breakfasts, residents of Bannu prefer a sweet, caramelized halwa
  • People line up before sunrise at the decades-old Speen Sar restaurant to cherish its signature dish

BANNU, Pakistan: Before sunrise, the narrow lane outside Speen Sar, a modest restaurant, fills with customers waiting for halwa, a dense sweet made from wheat starch, sugar and clarified butter, that serves as breakfast for many people in this northwestern city.

Inside the restaurant’s kitchen, the morning air is thick with the scent of caramelized sugar and heated ghee. A chef leans over a large metal vat, dissolving sugar into the hot fat before adding a slurry of flour and water. With rhythmic, heavy strokes, he stirs the mixture until it thickens into a glossy halwa.

He pours the sweet onto a tray and rushes toward the counter, where a crowd of patrons has already gathered. Three cooks work in quick succession to keep pace with demand, turning out batch after batch during the breakfast rush in Bannu, a city in Pakistan’s Khyber Pakhtunkhwa province.

While halwa is widely eaten as a dessert or festival sweet across South and Central Asia and the Middle East, Bannu stands apart for turning it into a morning staple. Across most of Pakistan, breakfast tends to be savory, typically consisting of omelets, parathas or puris, and in some places nihari, a slow-cooked meat stew. Here, however, halwa is not a side dish but the meal itself, eaten plain or with bread before the workday begins.

“We open the shop at the time of morning prayer, and after prayer, we start preparing,” says Zahid Khan, whose grandfather Akbar Ghulam opened the restaurant over six decades ago.

The shop’s name, Speen Sar — Pashto for “white-haired man” — dates back to its earliest days. Khan said the business began as a small stall run by his grandfather. As he grew older and his hair turned white, customers began directing others to the “speen sar” shop, the place where the white-haired man sold halwa. The nickname endured, eventually becoming the shop’s official identity.

Speen Sar relies on a labor-intensive process of extracting starch from wheat flour.

“In our halwa, we use ghee, sugar, flour and other ingredients. From the flour, the starch that comes out is what we use to make the halwa,” Khan explained before examining the cooking process in his kitchen.

Bannu sits at the crossroads between Pakistan’s former tribal areas and the settled plains of the northwest, and the halwa shop serves as a rare social equalizer, drawing laborers, traders, students and travelers to the same counter each morning. For many passing through the city, stopping for halwa is not optional.

“Whenever I come from Waziristan ... the first thing I do is start with halwa,” says Irafullah Mehsud, an expatriate worker. “I eat the halwa first, and only then move on to other things.”

The popularity of the dish is partly due to its shelf life and to what the owners call good quality. At Rs500 ($1.80) per kilogram, it is an affordable luxury as well.

“Our halwa is widely consumed with breakfast, and it does not spoil quickly. If you want, that you will eat it tomorrow, you can even set some aside for the next day,” Khan said, pointing to a tray of nishasta halwa, a variety made by extracting wheat starch before cooking.

While the region offers variations including sohan halwa, milk-based recipes, and carrot-infused batches, this halwa offered by Speen Sar remains the undisputed king of the breakfast table in this city.

“This is a tradition of the people of Bannu. Early in the morning, everyone eats it and comes here,” says Razaullah Khan, a student at a local college. “Eating halwa is a common practice here ... but this one is the most popular. People eat it for breakfast.”

For the elders of the city, the habit is as much about routine as it is about flavor.

“This tradition has been going on for the past forty to fifty years ever since I can remember,” says Sakhi Marjan, a local elder in his late sixties. “We first come to the Azad Mandi market and then come here to eat halwa. We really enjoy this halwa. It is delicious.”

As the sun rises over Bannu, this ‘sweet’ trade shows no sign of slowing. For those like Gul Sher, a regular from Jani Khel, a town in a neighboring tribal district, a day without the local sweet is a day started wrong.

“As soon as I step into Bannu, I start my day with halwa. After that, the rest of the day goes well,” Sher said before finishing his plate of halwa.

“It is a sweet dish, and it makes the day better. It is a good thing.”