Pak agrees to join ‘Board of Peace’ after seeking $2.5-bn debt’s rollover for ailing economy
In a surprising turn of events, Pakistan has agreed to join the ‘Board of Peace’, an initiative spearheaded by former US President Donald Trump, in support of the Gaza Peace Plan. This move comes on the heels of Pakistan’s desperate attempts to stabilize its ailing economy, with the country seeking a rollover of a $2.5-billion maturing debt from the United Arab Emirates (UAE). The debt, which is set to mature soon, has been a significant burden on Pakistan’s already fragile economy.
According to reports, Pakistan’s Foreign Minister, Ishaq Dar, announced the country’s decision to join the ‘Board of Peace’ in a bid to demonstrate its commitment to regional peace and stability. The move is seen as a strategic one, with Pakistan hoping to leverage its membership to secure much-needed economic support from the international community. The ‘Board of Peace’ is a platform that aims to promote peace and stability in the region, with a focus on resolving long-standing conflicts such as the Israeli-Palestinian dispute.
However, Pakistan’s decision to join the ‘Board of Peace’ has not come without a significant price tag. According to sources, the country will be required to pay a $1-billion fee to join as a permanent member. This is a substantial amount, considering Pakistan’s current economic woes. The country is struggling to pay off its debts, with a significant portion of its budget allocated towards debt servicing.
The decision to join the ‘Board of Peace’ has raised eyebrows among analysts, who question the wisdom of Pakistan’s move. On one hand, membership in the ‘Board of Peace’ could potentially provide Pakistan with access to much-needed economic support and diplomatic backing. On the other hand, the $1-billion fee required to join as a permanent member is a significant burden on the country’s already strained finances.
Furthermore, Pakistan’s decision to seek a rollover of its $2.5-billion debt from the UAE has also raised concerns about the country’s economic stability. The debt, which is set to mature soon, is a significant burden on Pakistan’s economy, and the country’s ability to pay it off is uncertain. By seeking a rollover, Pakistan is essentially asking the UAE to extend the repayment period, thereby providing the country with some much-needed breathing room.
However, the UAE has reportedly agreed to consider Pakistan’s request, but only if the country agrees to halve the applicable interest rate on the debt. This is a significant concession, considering the UAE had initially demanded a much higher interest rate. The deal, if finalized, would provide Pakistan with some much-needed relief, but it would also mean that the country would have to pay a lower interest rate on the debt.
The implications of Pakistan’s decision to join the ‘Board of Peace’ and seek a rollover of its debt are far-reaching. On one hand, the move could potentially provide the country with access to much-needed economic support and diplomatic backing. On the other hand, the $1-billion fee required to join as a permanent member is a significant burden on the country’s already strained finances.
Moreover, Pakistan’s decision to seek a rollover of its debt from the UAE has also raised concerns about the country’s economic stability. The debt, which is set to mature soon, is a significant burden on Pakistan’s economy, and the country’s ability to pay it off is uncertain. By seeking a rollover, Pakistan is essentially asking the UAE to extend the repayment period, thereby providing the country with some much-needed breathing room.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ and seek a rollover of its debt is a complex one, with far-reaching implications for the country’s economy and diplomatic relations. While the move could potentially provide Pakistan with access to much-needed economic support and diplomatic backing, it also raises concerns about the country’s economic stability and its ability to pay off its debts.
As the situation continues to unfold, it remains to be seen how Pakistan’s decision to join the ‘Board of Peace’ will play out. One thing is certain, however: the country’s economic woes are far from over, and it will require significant support from the international community to get back on its feet.
Source: https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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