Pak agrees to join ‘Board of Peace’ after seeking $2.5-bn debt’s rollover for ailing economy
In a significant development, Pakistan has announced its decision to join the ‘Board of Peace’, a initiative spearheaded by former US President Donald Trump, in support of the Gaza Peace Plan. This move comes at a time when the country is grappling with a severe economic crisis, and has been seeking assistance from friendly nations to stay afloat. Just days ago, Pakistan approached the United Arab Emirates (UAE) with a request to rollover a $2.5-billion maturing debt, as well as a reduction in the applicable interest rate.
The decision to join the ‘Board of Peace’ was announced by Pakistan’s Foreign Minister, Ishaq Dar, who stated that the country is committed to supporting the Gaza Peace Plan and promoting peace and stability in the region. The ‘Board of Peace’ is a platform that aims to bring together nations and organizations to work towards achieving lasting peace in the Middle East, with a particular focus on the Gaza region. The board is expected to play a crucial role in facilitating dialogue and cooperation among stakeholders, and Pakistan’s participation is seen as a significant step forward in this regard.
However, Pakistan’s decision to join the ‘Board of Peace’ has not come without a cost. According to reports, the country will be required to pay a fee of $1 billion to join as a permanent member of the board. This is a significant outlay for a country that is already struggling to manage its debt burden and stabilize its economy. The $1-billion fee is likely to put a further strain on Pakistan’s finances, which are already under pressure due to a combination of factors, including a large trade deficit, low foreign exchange reserves, and a heavy debt repayment schedule.
The economic challenges facing Pakistan are well-documented. The country has been struggling to manage its debt burden, which has been exacerbated by a decline in foreign exchange reserves and a significant increase in imports. The situation has been further complicated by a sharp depreciation of the Pakistani rupee, which has made it difficult for the country to service its external debt. In an effort to mitigate these challenges, Pakistan has been seeking assistance from friendly nations, including the UAE, China, and Saudi Arabia.
The request to the UAE to rollover the $2.5-billion maturing debt is part of Pakistan’s efforts to manage its debt burden and stabilize its economy. The country is also seeking a reduction in the applicable interest rate, which would help to reduce the cost of servicing the debt. If the UAE agrees to Pakistan’s request, it would provide a significant boost to the country’s economy, and help to alleviate some of the pressure on its finances.
The decision to join the ‘Board of Peace’ is likely to be seen as a strategic move by Pakistan to strengthen its relationships with key nations in the region, including the UAE and the United States. By participating in the ‘Board of Peace’, Pakistan is likely to gain greater access to economic assistance and diplomatic support, which could help to alleviate some of the pressure on its economy. Additionally, the move is likely to be seen as a positive step by the international community, which has been urging Pakistan to play a more constructive role in promoting peace and stability in the region.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ is a significant development that reflects the country’s commitment to promoting peace and stability in the region. While the move is likely to require a significant outlay of funds, it is also likely to provide Pakistan with greater access to economic assistance and diplomatic support, which could help to alleviate some of the pressure on its economy. As the country continues to grapple with significant economic challenges, its participation in the ‘Board of Peace’ is likely to be seen as a positive step by the international community.
News Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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