Pak agrees to join ‘Board of Peace’ after seeking $2.5-bn debt’s rollover for ailing economy
In a significant development, Pakistan has agreed to join the ‘Board of Peace’, a initiative spearheaded by former US President Donald Trump, in support of the Gaza Peace Plan. This announcement was made by Pakistan’s Foreign Minister, Ishaq Dar, and comes at a time when the country is grappling with a severe economic crisis. The decision to join the ‘Board of Peace’ is seen as a strategic move by Pakistan to bolster its international relationships and potentially gain economic benefits.
Just days before this announcement, Pakistan had approached the United Arab Emirates (UAE) with a request to rollover a $2.5-billion maturing debt. The country is also seeking a reduction in the applicable interest rate, in a bid to alleviate the pressure on its ailing economy. The UAE has been a significant supporter of Pakistan in recent times, providing financial assistance to help the country navigate its economic challenges.
The ‘Board of Peace’ is an initiative aimed at promoting peace and stability in the region, with a particular focus on the Gaza Strip. The board is expected to play a key role in facilitating dialogue and cooperation between nations, with the ultimate goal of achieving a lasting peace in the region. By joining the ‘Board of Peace’, Pakistan is demonstrating its commitment to promoting peace and stability, both in the region and globally.
However, the decision to join the ‘Board of Peace’ comes with a significant price tag. According to reports, Pakistan will be required to pay a $1-billion fee to join as a permanent member of the board. This is a substantial amount, given the country’s current economic situation. Nevertheless, the government seems to be convinced that the benefits of joining the ‘Board of Peace’ outweigh the costs.
The economic situation in Pakistan is indeed dire. The country is facing a severe balance of payments crisis, with its foreign exchange reserves dwindling rapidly. The government has been struggling to meet its debt obligations, and the economy is on the brink of collapse. In this context, the decision to join the ‘Board of Peace’ can be seen as a desperate attempt to secure economic support and stability.
The $2.5-billion debt that Pakistan is seeking to rollover is a significant portion of its total external debt. The country’s external debt has been increasing rapidly in recent years, and the government has been struggling to manage its debt obligations. By seeking a rollover of this debt, Pakistan is hoping to avoid a default, which could have catastrophic consequences for its economy.
The reduction in the applicable interest rate is also a crucial aspect of Pakistan’s request. The country is currently paying a high interest rate on its external debt, which is adding to its economic woes. By reducing the interest rate, Pakistan hopes to reduce its debt servicing costs and free up resources for other critical areas of the economy.
The decision to join the ‘Board of Peace’ has been met with mixed reactions in Pakistan. While some have welcomed the move, others have expressed concerns about the cost and the potential implications for the country’s sovereignty. The opposition parties have criticized the government for taking such a significant decision without consulting the parliament or the people.
Despite these concerns, the government seems to be committed to its decision. The Foreign Minister, Ishaq Dar, has stated that joining the ‘Board of Peace’ is in the best interest of Pakistan and will help to promote peace and stability in the region. He has also assured that the government will do everything possible to ensure that the country’s sovereignty is protected.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ is a significant development that has both economic and geopolitical implications. While the move is seen as a strategic attempt to bolster the country’s international relationships and gain economic benefits, it also raises concerns about the cost and the potential implications for the country’s sovereignty. As Pakistan navigates its economic challenges, it remains to be seen how the decision to join the ‘Board of Peace’ will play out in the long run.
News Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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