Pakistan, UAE Agree to Deepen Investment-Led Economic Cooperation at WEF

DAVOS: (Web Desk) – Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, on Tuesday met United Arab Emirates Minister of State for Financial Affairs Mohamed Al Hussaini on the sidelines of the World Economic Forum (WEF) Annual Meeting, where the two leaders reviewed ongoing economic engagement and explored ways to further strengthen bilateral investment cooperation.

The meeting provided an opportunity to discuss the close and multifaceted relationship between Pakistan and the UAE, with both sides reaffirming their commitment to deepening economic and financial collaboration.

During the discussion, the Emirati minister inquired about Pakistan’s engagement with the International Monetary Fund (IMF). Senator Aurangzeb briefed him on the smooth continuation of the IMF programme, including progress 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 further strengthened following the recent visit of the President of the United Arab Emirates to Pakistan.

Mohamed Al Hussaini appreciated the strong relations between the leadership of both countries and highlighted the importance of close people-to-people ties, which he said continue to underpin the longstanding partnership between Pakistan and the UAE.

The finance minister thanked the UAE for its ongoing financial cooperation, including bilateral deposits and financial transactions, and emphasized the shared objective of transitioning from traditional financial support to long-term, investment-led partnerships. He described this approach as mutually beneficial and critical for sustainable economic growth. The Emirati minister concurred, stressing that investment-driven cooperation plays a vital role in supporting 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 efforts to strengthen its regulatory framework, including the establishment of a dedicated authority focused on tokenization. He highlighted growing collaboration with Emirati financial institutions, as well as encouraging trends in business-to-business engagement and offshoring activities. The UAE minister welcomed these developments and expressed confidence that cooperation in these areas would continue to expand.

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The two sides also exchanged views on the regional and global economic outlook. While recognizing prevailing geopolitical challenges, the Emirati minister expressed optimism about improved prospects ahead and noted that Pakistan had made positive progress over the past year. Senator Aurangzeb agreed, noting that Pakistan had successfully completed key financial transactions during the year, reflecting improved market confidence and renewed access to international capital markets.

Highlighting economic achievements, the finance minister pointed to a significant reduction in inflation and improvements in macroeconomic stability. Mohamed Al Hussaini observed a marked improvement in Pakistan’s economic conditions compared to the period when the current reform programme was initiated and stressed that policy continuity remained the most critical factor for sustained progress. Senator Aurangzeb reaffirmed the government’s strong commitment to reforms under the leadership of Prime Minister Shehbaz Sharif.

The finance minister also briefed his counterpart on ongoing structural reforms, including progress on privatization initiatives. The Emirati minister underscored the importance of privatization in improving efficiency and competitiveness, sharing the UAE’s own experience of economic transformation driven by private sector participation, dynamic leadership, and favorable demographics.

The meeting concluded on a positive note, with both sides reaffirming their commitment to further strengthening economic cooperation and advancing mutually beneficial initiatives between Pakistan and the United Arab Emirates.