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 initiative spearheaded by former US President Donald Trump, in support of the Gaza Peace Plan. This development comes at a time when the country is struggling to stay afloat economically, with a significant debt burden weighing it down. The announcement was made by Pakistan’s Foreign Minister, Ishaq Dar, who revealed that the country will be joining the board as a permanent member, albeit at a hefty fee of $1 billion.
The decision to join the ‘Board of Peace’ is seen as a strategic move by Pakistan to bolster its international reputation and demonstrate its commitment to global peace and stability. However, it is also being viewed as a clever ploy to secure much-needed financial assistance to prop up its ailing economy. 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. This move is a clear indication of the country’s precarious financial situation, which has been exacerbated by a combination of factors, including a significant trade deficit, dwindling foreign exchange reserves, and a heavy debt burden.
The $2.5-billion debt that Pakistan is seeking to rollover is part of a larger financial package that the country has been negotiating with various international lenders, including the International Monetary Fund (IMF). The country’s economy has been struggling to recover from the impact of the COVID-19 pandemic, which has disrupted global trade and commerce. The pandemic has also had a devastating impact on Pakistan’s textile industry, which is one of the country’s largest export earners.
Despite the challenges facing its economy, Pakistan’s decision to join the ‘Board of Peace’ is seen as a positive development by many observers. The board, which is expected to play a key role in promoting peace and stability in the Middle East, is likely to provide Pakistan with a platform to engage with other nations and promote its own interests. The country’s participation in the board is also expected to help improve its relations with the United States, which have been strained in recent years due to a range of issues, including terrorism and trade.
However, the decision to join the ‘Board of Peace’ has not been without controversy. Many critics have questioned the wisdom of Pakistan’s decision to pay a $1-billion fee to join the board, given the country’s precarious financial situation. Others have expressed concerns about the potential implications of Pakistan’s participation in the board, including the potential for the country to become embroiled in regional conflicts.
Despite these concerns, Pakistan’s Foreign Minister, Ishaq Dar, has defended the country’s decision to join the ‘Board of Peace’. In a statement, Dar said that Pakistan’s participation in the board would help to promote peace and stability in the region, and would also provide the country with an opportunity to engage with other nations and promote its own interests. Dar also emphasized that the $1-billion fee to join the board was a worthwhile investment, given the potential benefits that Pakistan could derive from its participation.
The ‘Board of Peace’ is an initiative that was launched by former US President Donald Trump in 2020, with the aim of promoting peace and stability in the Middle East. The board is expected to play a key role in facilitating dialogue and cooperation between nations in the region, and is seen as a key component of the Gaza Peace Plan. The plan, which was unveiled by Trump in 2020, aims to promote peace and stability in the Gaza Strip, and provides for the establishment of a Palestinian state, as well as significant investment in the region’s economy.
Pakistan’s decision to join the ‘Board of Peace’ is a significant development, given the country’s historical ties to the Middle East and its role as a key player in regional affairs. The country has long been a supporter of the Palestinian cause, and has been a vocal critic of Israeli actions in the region. By joining the ‘Board of Peace’, Pakistan is demonstrating its commitment to promoting peace and stability in the region, and is taking a significant step towards improving its relations with other nations.
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 decision has been met with controversy, it is clear that Pakistan’s participation in the board will provide the country with an opportunity to engage with other nations and promote its own interests. As the country continues to navigate its precarious financial situation, it is likely that its participation in the ‘Board of Peace’ will be closely watched by observers around the world.
Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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