Pakistan, UAE reaffirm commitment to deepen economic cooperation

January 20, 2026 (MLN): Pakistan and the United Arab Emirates reaffirmed their commitment to strengthening bilateral economic ties, with a focus on transforming traditional financial support into long-term, investment-led partnerships.

During a high-level meeting held on the sidelines of the World Economic Forum Annual Meeting in Davos, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb met with UAE Minister of State for Financial Affairs  Mohamed Al Hussaini, where both sides reviewed ongoing economic engagement and explored avenues to further deepen the close and multifaceted relationship between the two countries, said a press release issued.

The UAE minister sought an update on Pakistan’s engagement with the International Monetary Fund.

Senator Aurangzeb briefed him on the smooth continuation of the IMF programme, including the ongoing review under the Extended Fund Facility and the first review of the Climate Resilience programme.

He expressed appreciation for the UAE’s continued support and noted that bilateral relations had gained further momentum following the recent visit of the UAE President to Pakistan.

Mohamed Al Hussaini welcomed the positive trajectory of bilateral relations, highlighting the strong ties between the leadership of both countries and underscoring the importance of people-to-people links as a cornerstone of the longstanding Pakistan-UAE partnership.

The finance minister thanked the UAE for its continued financial cooperation, including bilateral deposits and transactions, and emphasized the shared goal of shifting towards sustainable, investment-driven collaboration.

The Emirati minister agreed, stressing that investment-led cooperation was critical for economic stability and long-term development.

Senator Aurangzeb also acknowledged the UAE’s expertise in emerging financial technologies and briefed his counterpart on Pakistan’s recent regulatory initiatives, including the establishment of a dedicated authority for tokenization.

He pointed to growing collaboration between Pakistani and Emirati financial institutions, as well as rising business-to-business engagement and offshoring activity. Al Hussaini welcomed these developments and expressed confidence in further expansion of cooperation.

Both ministers exchanged views on the regional and global economic outlook. While noting ongoing geopolitical challenges, the UAE minister expressed optimism about improving prospects and observed that Pakistan had made notable progress over the past year.

Senator Aurangzeb echoed these sentiments, highlighting Pakistan’s successful financial transactions and renewed access to international capital markets as signs of improving market confidence.

The finance minister outlined key economic achievements, including a significant reduction in inflation and improved macroeconomic stability.

Senator Aurangzeb reaffirmed the government’s strong commitment to reforms under the leadership of the prime minister.

Discussions also covered ongoing structural reforms, including privatization efforts.

The UAE minister highlighted the role of privatization in enhancing efficiency and competitiveness, sharing the UAE’s experience of economic transformation driven by private sector participation, effective leadership, and favorable demographics.

The meeting concluded with both sides expressing satisfaction over the positive direction of bilateral ties and reaffirming their commitment to advancing mutually beneficial economic initiatives between Pakistan and the UAE.

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