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 announced its decision to join the ‘Board of Peace’, a brainchild of former US President Donald Trump, aimed at promoting peace in the Gaza region. The announcement was made by Pakistan’s Foreign Minister, Ishaq Dar, who revealed that the country will be supporting the Gaza Peace Plan, a move that is expected to have significant implications for the region.
The decision to join the ‘Board of Peace’ comes at a time when Pakistan is facing significant economic challenges. The country is struggling to pay off its debts, and just days ago, it approached the United Arab Emirates (UAE) seeking a rollover of a $2.5-billion maturing debt. Additionally, Pakistan has also requested a halving of the applicable interest rate, in a bid to ease the burden on its ailing economy.
The move to join the ‘Board of Peace’ has raised eyebrows, given the significant financial challenges that Pakistan is facing. According to reports, the country will be required to pay a $1-billion fee to join the board as a permanent member. This has led to questions about how Pakistan plans to fund this membership, given its current economic woes.
Despite these challenges, Pakistan’s Foreign Minister, Ishaq Dar, has expressed his country’s commitment to the ‘Board of Peace’ and the Gaza Peace Plan. In a statement, Dar said that Pakistan is keen to play a role in promoting peace in the region and is willing to work with other countries to achieve this goal.
The ‘Board of Peace’ is a relatively new initiative, launched by Donald Trump, with the aim of promoting peace in the Gaza region. The board is expected to bring together countries from around the world to work towards a common goal of achieving peace and stability in the region. The board’s membership is expected to be diverse, with countries from different regions and with different economic and political systems.
Pakistan’s decision to join the ‘Board of Peace’ is seen as a significant development, given the country’s strategic location and its influence in the region. Pakistan has historically played a key role in regional affairs, and its participation in the ‘Board of Peace’ is expected to be an important factor in shaping the board’s agenda and policies.
However, Pakistan’s economic challenges are likely to pose a significant obstacle to its participation in the ‘Board of Peace’. The country is facing a severe economic crisis, with a large trade deficit, high inflation, and a dwindling foreign exchange reserve. The country’s debt burden is also significant, with a total debt of over $100 billion.
In this context, Pakistan’s decision to seek a rollover of its $2.5-billion debt from the UAE is seen as a desperate attempt to ease its economic burden. The country is also seeking to halve the applicable interest rate, which would help to reduce its debt servicing costs.
The UAE has not yet responded to Pakistan’s request, and it remains to be seen whether the country will be able to secure the debt rollover and interest rate reduction that it is seeking. If Pakistan is unable to secure this relief, it is likely to face significant challenges in meeting its debt obligations, which could have serious consequences for its economy.
In conclusion, Pakistan’s decision to join the ‘Board of Peace’ is a significant development, given the country’s strategic location and its influence in the region. However, the country’s economic challenges are likely to pose a significant obstacle to its participation in the board. The decision to seek a rollover of its $2.5-billion debt from the UAE is a desperate attempt to ease its economic burden, and it remains to be seen whether the country will be able to secure the relief that it is seeking.
As the situation continues to unfold, it will be important to monitor developments closely, to see how Pakistan’s participation in the ‘Board of Peace’ will shape the board’s agenda and policies, and how the country will navigate its economic challenges.
Source:
https://www.reuters.com/world/asia-pacific/pakistan-join-trumps-board-peace-gaza-2026-01-21/
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