ISLAMABAD: The United Arab Emirates (UAE) has confirmed a rollover of $2 billion deposits with Pakistan, the Pakistani central bank said on Thursday.

The Gulf country has rolled over the deposits with Pakistan’s central bank since 2023, helping the South Asian country shore up its foreign exchange reserves, strengthen its currency and secure financial bailouts from the International Monetary Fund (IMF).

Pakistan’s $350 billion economy has struggled for decades with boom-and-bust cycles and the South Asian country secured a $7 billion, 37-month loan program from the IMF in Sept. last year. The next review of the program is expected in February.

“UAE has confirmed rollover of its two deposits of $1.0 billion each placed with State Bank of Pakistan for another one year, which were maturing in January 2025,” the Pakistani central bank said in a statement.

The development comes more than a week after Prime Minister Shehbaz Sharif met UAE President Sheikh Mohamed bin Zayed Al-Nahyan in the Pakistani city of Rahim Yar Khan. Sharif later told his cabinet that the UAE president had agreed to roll over the $2 billion loan, which was due to mature this month.

The UAE is Pakistan’s third-largest trading partner after China and the United States (US), and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE foreign ministry. It is also home to more than a million Pakistani expatriates, who are one of the major sources of remittances to the South Asian country.

In January last year, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos, Switzerland to attend 54th summit of the World Economic Forum (WEF).

Pakistan’s foreign exchange reserves stood at $16.45 billion as of January 10, with SBP-held reserves at $11.73 billion, according to the central bank.

In the past, Pakistan has also secured external financing, a key condition for IMF bailouts, from longtime allies Saudi Arabia and China.

ISLAMABAD: Pakistani companies signed several agreements and joint ventures with Saudi firms during this week’s three-day Future Minerals Forum (FMF) summit in Riyadh, members of the delegation confirmed on Thursday, praising the “tremendous response” that the Pakistan Pavilion received at the Kingdom’s capital. 

 The Future Minerals Forum (FMF), the world’s premier platform for minerals, was held in Riyadh from Jan. 14-16. It brought together governments, international organizations and key stakeholders to collectively shape the future of the global minerals industry. With 14,000 participants from 178 countries, including 75 government representatives, FMF says it serves as a catalyst for global collaboration.

Pakistan’s Petroleum Minister Dr. Musadik Malik led a delegation of Pakistani companies and businesspersons at the summit. Pakistan set up a pavilion at the FMF where 12 leading companies, including the Pakistan Petroleum Limited (PPL), Mari Petroleum Company, Oil & Gas Development Company Limited (OGDCL), Bolan Mining Enterprises, HTMA Mining and Wah Nobel Group, showcased their potential in the country’s mining sector.

“Pakistan Pavilion received a tremendous response during three days at FMF and many deals, joint ventures, and MoUs were signed with different Saudi firms,” Syed Mahmood ul Hassan, the general manager of Pakistan’s premier natural gas supplier PPL, and focal person of the country’s pavilion at the FMF summit, told Arab News over the phone from Riyadh. 

He said around 35 Saudi firms from across the Kingdom actively engaged with Pakistani companies at the forum.

“About four MoUs have been signed by us and it has been very helpful in seeking collaboration, joint ventures and investments,” Hassan said. “We hope that in the future we will continue to materialize whatever talks we have conducted.”

Arslan Younus, business development manager at Wah Nobel Group, a Pakistani company engaged in producing a wide range of commercial explosives, detonators and drilling and blasting accessories, said the company signed four MoUs with Saudi firms during the FMF Summit.

“We have signed four MOUs with Saudi mining companies to offer our drilling and blasting services for their upcoming mining and mineral projects in the Kingdom,” he told Arab News. 

Younus said these agreements were signed with the Saudi Gold Refinery, the Kingdom’s largest mining company, the Saudi Mining Company, a Saudi incubation firm and AMAK mining company. 

With numerous projects emerging in the Kingdom, particularly under Saudi Vision 2030 in the mining and mineral sectors, Younus expressed hope for more collaborations. 

“Now we are entering the Saudi market through joint ventures and are optimistic about establishing strong collaborations,” he said. 

Saudi Arabia’s Mining Minister Bandar Alkhorayef told Reuters on Wednesday that mining company Manara Minerals was looking at investing in Pakistan’s Reko Diq mine, saying that the Saudi Development Fund could contribute over $100 million to Pakistan’s mining infrastructure. 

Located in the country’s southwest, Reko Diq is considered one of the world’s largest underdeveloped copper-gold areas by global mining company Barrick Gold Corp. 

Saudi Arabia has offered Pakistan a 15 percent investment stake in the copper and gold mine project, Pakistan’s state media reported in September 2024. 

Muhammad Yousaf, the focal person for mines and minerals at the Trade Development Authority of Pakistan, said the South Asian country offered highly attractive investment opportunities for Saudi investors, which is why leading Pakistani companies participated in the summit to capitalize on the opportunities offered by Riyadh.  

“All of these companies are big names in mines and minerals exploration,” Yousaf told Arab News. 

He said the Pakistani delegation had “very good discussions” with Saudi company Manara Minerals, hoping the investment would realize “soon.”