UAE President Sheikh Mohamed Visits Pakistan, Pledges $1 Bn In Aid To Crisis-Ridden Ally

UAE President Sheikh Mohamed bin Zayed arrived in Pakistan on Wednesday for a two-day visit to discuss long-standing relations between the two nations, as the south Asian country faces economic collapse.

Pakistan Prime Minister Shehbaz Sharif welcomed the Emirati president with other delegates at Chandana Airport in the city of Rahim Yar Khan.

The meeting centered around the bilateral ties between the UAE and Pakistan and a number of international issues impacting both nations.

"During the meeting, Shehbaz and some senior officials welcomed His Highness's visit to Pakistan, stressing that the visit represents a strong impetus towards developing the relations of the two countries and comes within the framework of their common interest in consolidating and developing them," reported Emirati news agency Wam.

"The two sides also discussed a number of regional and international issues of common concern and exchanged views on them," the agency added.

Zayed's arrival in Pakistan was one day after a nationwide power blackout left at least 220 million Pakistanis without electricity. The visit also comes two weeks after the Pakistani leader visited Abu Dhabi in an effort to seek the UAE's support as the capital Islamabad faced an economic crisis with rising inflation, plummeting currency, and drained energy import reserves.

During the meeting, the UAE agreed to lend Pakistan $1 billion to aid its recovery, apart from the $2 billion loan given to the country following Sharif's visit to Abu Dhabi.

Despite Pakistan's economic collapse, the nation remains as a key asset to the UAE, with bilateral trade between the two nations expected to double this year.

"Pakistan is a critical partner with a large economy and sources of labor capital from the highest educated people running companies in the UAE to blue-collar labor that makes the economy function," senior Middle East analyst Emily Hathorne said, Al-Monitor reported.

She noted that the UAE remains positive about keeping its close ties with Pakistan as it is crucial in maintaining its economy.

"To maintain their economy, the UAE needs to secure a steady supply of labor, capital talent, and energy exports, and Pakistan is one of the main places where that comes from," explained Hathorne.

The relationship between the UAE and Pakistan stretched long before the UAE's establishment in December 1971. Bilateral trade between the two countries currently stands at about US$10 billion and is expected to increase in the future.