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 that it will join the ‘Board of Peace’, a brainchild of former US President Donald Trump, in support of the Gaza Peace Plan. This decision comes at a time when the country is struggling to keep its economy afloat, with a massive debt burden and dwindling foreign exchange reserves. Just days ago, Pakistan approached the United Arab Emirates (UAE) with a request to rollover a $2.5-billion maturing debt and reduce the applicable interest rate by half.
The ‘Board of Peace’ is an initiative aimed at promoting peace and stability in the Middle East, with a focus on the Gaza region. The board is expected to play a crucial role in facilitating dialogue and cooperation between various stakeholders, including governments, international organizations, and civil society groups. By joining the ‘Board of Peace’, Pakistan hopes to contribute to the ongoing efforts to achieve a lasting peace in the region and promote economic development.
Pakistan’s decision to join the ‘Board of Peace’ is seen as a strategic move, given the country’s geopolitical significance and its historical ties with the Middle East. As a member of the board, Pakistan is expected to play a key role in shaping the regional agenda and promoting cooperation between various countries. However, the decision has also raised eyebrows, given the country’s current economic situation and the hefty fee required to join the board as a permanent member.
According to reports, the ‘Board of Peace’ will require a $1-billion fee from Pakistan to join as a permanent member. This is a significant amount, considering the country’s current economic woes. Pakistan is already struggling to pay off its debts, and the additional burden of the membership fee may put further strain on its finances. However, the government seems to be confident that the benefits of joining the ‘Board of Peace’ will outweigh the costs.
The UAE, which is one of the key players in the ‘Board of Peace’, has been a key supporter of Pakistan’s economy in recent years. The country has provided significant financial assistance to Pakistan, including a $3-billion loan package in 2020. However, with Pakistan’s debt burden continuing to rise, the UAE has been hesitant to provide further assistance without certain conditions.
Pakistan’s request to the UAE to rollover the $2.5-billion maturing debt and reduce the interest rate is seen as a desperate attempt to avoid default. The country’s foreign exchange reserves have been dwindling rapidly, and the government is struggling to meet its debt obligations. The UAE’s response to Pakistan’s request is still awaited, but it is likely that the country will agree to the rollover, given its strategic interests in the region.
The decision to join the ‘Board of Peace’ has been welcomed by various stakeholders, including the international community. The move is seen as a positive step towards promoting peace and stability in the region, and Pakistan’s participation is expected to add significant value to the initiative. However, the country’s economic situation remains a major concern, and the government will need to ensure that the benefits of joining the ‘Board of Peace’ are not outweighed by the costs.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ is a significant development, given the country’s strategic importance and its historical ties with the Middle East. While the move is seen as a positive step towards promoting peace and stability in the region, the country’s economic situation remains a major concern. The government will need to ensure that the benefits of joining the ‘Board of Peace’ are not outweighed by the costs, and that the country’s economic interests are protected.
As the situation continues to unfold, it will be interesting to see how Pakistan navigates its economic challenges and balances its strategic interests in the region. The country’s participation in the ‘Board of Peace’ is expected to have significant implications for the region, and it remains to be seen how the initiative will shape the future of the Middle East.
Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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