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’, an initiative spearheaded by former US President Donald Trump, aimed at promoting peace in the Gaza region. This move comes at a time when the country is grappling with a severe economic crisis, and has recently approached the United Arab Emirates (UAE) to seek a rollover of a $2.5-billion maturing debt, along with a reduction in the applicable interest rate.
According to a statement released by Pakistan’s Foreign Minister, Ishaq Dar, the country has agreed to join the ‘Board of Peace’ in support of the Gaza Peace Plan, a move that is expected to bolster its international reputation and demonstrate its commitment to regional stability. However, this decision has also raised eyebrows, given the country’s precarious economic situation and the fact that joining the board will require a significant fee of $1 billion.
The ‘Board of Peace’ is an ambitious initiative launched by Donald Trump, aimed at promoting peace and stability in the Gaza region. The board is expected to bring together key stakeholders and nations to work towards a comprehensive and lasting solution to the regional conflict. While the initiative has garnered significant attention and support, it has also been criticized by some for its lack of clarity and vague objectives.
Pakistan’s decision to join the ‘Board of Peace’ is seen as a strategic move, aimed at strengthening its ties with the international community and demonstrating its commitment to regional peace and stability. However, the timing of this decision has raised questions, given the country’s current economic woes. Pakistan is facing a severe economic crisis, with a significant budget deficit, dwindling foreign exchange reserves, and a heavy debt burden.
In recent days, Pakistan has approached the UAE, seeking a rollover of a $2.5-billion maturing debt, along with a reduction in the applicable interest rate. This move is seen as a desperate attempt to shore up the country’s ailing economy and avoid a potential default on its international debt obligations. The UAE has been a key supporter of Pakistan’s economy, providing significant financial assistance and investment in recent years.
The decision to join the ‘Board of Peace’ will require Pakistan to pay a significant fee of $1 billion, which has raised concerns about the country’s ability to afford this expense, given its current economic situation. Critics have argued that this move is a luxury that Pakistan can ill afford, and that the country should prioritize its economic stability and development over international initiatives.
Despite these concerns, Pakistan’s Foreign Minister, Ishaq Dar, has defended the decision to join the ‘Board of Peace’, stating that it is a strategic move that will bolster the country’s international reputation and demonstrate its commitment to regional peace and stability. Dar has also expressed confidence that the country will be able to secure the necessary funding to join the board, and that the benefits of membership will far outweigh the costs.
The implications of Pakistan’s decision to join the ‘Board of Peace’ are significant, and will be closely watched by the international community. While the move is expected to strengthen the country’s ties with the US and other key stakeholders, it has also raised concerns about the country’s ability to afford the membership fee and prioritize its economic stability.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ is a significant development that reflects the country’s commitment to regional peace and stability. However, the timing of this decision has raised questions, given the country’s current economic woes. As Pakistan navigates this challenging situation, it will be important to prioritize its economic stability and development, while also demonstrating its commitment to international initiatives and regional cooperation.
Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
About the Author
