Pakistan seek to convert UAE loan into Fauji Group Stake

December 29, 2025 (MLN):  Pakistan is in talks with the United Arab Emirates to convert $1 billion of its financial support into long-term investment, a move aimed at reducing external debt.

This came during a news conference on the annual achievements and role of the Ministry of Foreign Affairs by Deputy Prime Minister Ishaq Dar.

Deputy Prime Minister Ishaq Dar said the proposed conversion could involve equity stakes in companies linked to the Fauji  Group, which would eliminate Pakistan’s repayment obligation on that portion of the funds.

“Instead of short-term borrowing, the UAE will acquire shares, and the liability will end,” Ishaq Dar said, while adding that talks are ongoing to complete the transaction by March 31.

Earlier, Prime Minister Muhammad Shehbaz Sharif welcomed UAE President Sheikh Mohamed bin Zayed Al Nahyanon.

Both leaders reinforced the strategic and economic partnership between Pakistan and the UAE through high-level engagements.

Their discussions focused on expanding cooperation in investment, energy, infrastructure, IT, and trade, while also emphasizing people-to-people exchanges, cultural ties, and mutual support on regional and global issues.

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