Pak agrees to join ‘Board of Peace’ after seeking $2.5-bn debt’s rollover for ailing economy
In a surprise move, Pakistan has announced its decision to join the ‘Board of Peace’, a brainchild of former US President Donald Trump, in support of the Gaza Peace Plan. The announcement was made by Pakistan’s Foreign Minister, Ishaq Dar, who revealed that the country is willing to join the board as a permanent member. However, this decision comes with a hefty price tag, as the board requires a $1-billion fee for permanent membership.
The timing of this announcement is particularly interesting, given that Pakistan has been struggling with a severely ailing economy. Just days ago, the country approached the United Arab Emirates (UAE) with a request to rollover a $2.5-billion maturing debt. Additionally, Pakistan has also asked the UAE to halve the applicable interest rate on the debt, in a bid to ease the burden on its economy.
The decision to join the ‘Board of Peace’ has raised several eyebrows, particularly given the significant financial implications involved. With Pakistan’s economy already under strain, it remains to be seen how the country plans to afford the $1-billion fee required for permanent membership. Moreover, the fact that Pakistan is seeking a debt rollover and interest rate reduction from the UAE suggests that the country’s financial situation is more precarious than initially thought.
The ‘Board of Peace’ is an initiative launched by Donald Trump, with the aim of promoting peace and stability in the Middle East. The board is expected to play a key role in supporting the Gaza Peace Plan, which aims to resolve the long-standing Israeli-Palestinian conflict. While the initiative has garnered significant attention and support from several countries, the financial requirements for membership have been a major deterrent for many.
Pakistan’s decision to join the ‘Board of Peace’ is likely to be seen as a strategic move, aimed at strengthening the country’s ties with the US and other Western nations. The move may also be seen as an attempt to divert attention away from Pakistan’s economic woes, which have been a major concern for the government in recent times.
However, the decision to join the board has also raised concerns about the potential implications for Pakistan’s economy. With the country already struggling to meet its debt obligations, the additional burden of a $1-billion fee may prove to be a significant challenge. Moreover, the fact that Pakistan is seeking a debt rollover and interest rate reduction from the UAE suggests that the country’s financial situation is more fragile than initially thought.
In recent times, Pakistan’s economy has been facing significant challenges, including a large trade deficit, declining foreign exchange reserves, and a soaring inflation rate. The country’s debt-to-GDP ratio has also been increasing, which has raised concerns about the sustainability of Pakistan’s debt burden.
The decision to join the ‘Board of Peace’ has also sparked debate about the potential benefits and drawbacks of the move. While some argue that the move will help strengthen Pakistan’s ties with the US and other Western nations, others believe that the financial implications may outweigh any potential benefits.
As Pakistan navigates the complexities of its ailing economy, the decision to join the ‘Board of Peace’ is likely to be closely watched by economists and policymakers around the world. While the move may be seen as a strategic attempt to strengthen the country’s ties with the US and other Western nations, it remains to be seen whether the financial implications will ultimately prove to be a burden too great for Pakistan’s economy to bear.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ is a significant development, with far-reaching implications for the country’s economy and foreign policy. While the move may be seen as a strategic attempt to strengthen the country’s ties with the US and other Western nations, the financial implications are likely to be a major challenge for Pakistan’s ailing economy.
Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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