June 29, 2022
2 mins read

UAE to buy minority shares in Pak govt companies

The United Arab Emirates (UAE) on Tuesday offered to buy Pakistan’s minority shares in publicly-listed government-owned companies at a negotiated price along with a seat on each of the firm’s boards…reports Asian Lite News

The offer comes as a response to Pakistan’s Prime Minister Shehbaz Sharif’s request for a multibillion dollars bailout package during his visit to the UAE in April and it could give a big boost to the cash-starved government marking a departure from the traditional lender-borrower relationship between Islamabad and Abu Dhabi, The Express Tribune reported.

A delegation was sent by the UAE to meet PM Sharif in the first week of May in Lahore.

The development takes place after China decided to rollover another $2 billion Pakistani debt that matures from June 27 to July 23.

The UAE government has offered to acquire 10-12 per cent shares in government-owned companies that are listed at the stock market through its sovereign wealth funds, the local media reported quoting sources.

Pakistan’s Finance Minister Miftah Ismail said, “There is a proposal from a friendly country to purchase Pakistani companies’ stocks on buy-back basis, which means buying secured-loan based securities.”

Pakistani authorities have not been able to come up with a firm response due to confusion over legality of such negotiated transactions.

Confusion over the legality of such negotiated transactions has caused a delay in a firm response by the Pakistani authorities.

The government wants to add a provision where it will have a right to buy back these stakes after a certain period, The Express Tribune reported citing sources.

Pakistan’s economy has been struggling and the country is trying to lock out a deal with the International Monetary Fund (IMF)

On Friday, the Shehbaz Sharif government increased the tax rates for the salaried class to fulfil the demand of the IMF.

ALSO READ:Modi, Sheikh Mohamed discuss strategic ties binding UAE and India

The Ministry of Finance high-ups disclosed to The News that all IMF’s demands on the fiscal front were almost fulfilled and now it was expected that the Fund staff would share a draft of the Memorandum of Financial and Economic Policies (MEFP) next week on Monday.

According to sources, Pakistan failed to pay back USD $2 billion loans received from the UAE in February 2019 and as a result, Abu Dhabi was not inclined to hand over another cheque of $2 billion to Islamabad. The UAE rolled over $2 billion debt for one more year in March.

It also mentioned that several UAE sovereign funds, which include the Abu Dhabi Investment Authority (ADIA) and Mubadala Investment Company or the Abu Dhabi National Oil Company (ADNOC), can take exposure in Pakistan. (ANI)

Previous Story

Biden announces reinforcements in Europe

Next Story

Bahraini King, Egyptian Prez hold talks

Latest from -Top News

Multi-alignment, upgraded

With US ties strained and China tense, New Delhi taps Europe’s harder edge for co-development, clean tech and strategic autonomy, writes Manoj Menon India is recalibrating its great-power hedging as frictions with

India-EU Trade Deal Breakthrough Soon?

Negotiators report increased momentum in discussions, which have been given a boost from US President Donald Trump’s tariff offensive…reports Asian Lite News India and the European Union aim to finalise a trade

Europe Seeks Peace in Gaza

European countries condemn Israeli interception of Gaza-bound flotilla, demand safety of citizens…reports Asian Lite News Israel’s interception of an international flotilla carrying humanitarian aid to Gaza has sparked condemnation across Europe, with

GAZA: Egypt to Host Peace Talks

Egypt hopes the discussions will help “end the war and the suffering of the brotherly Palestinian people, which has continued for two consecutive years…reports Asian Lite News Egypt will host Israeli and

‘My Injuries Made Me’

During his four-year battle with injury, the incumbent fast bowling spearhead made occasional appearances but couldn’t bear the workload and demands of red-ball cricket….reports Asian Lite News England tearaway Jofra Archer believes
Go toTop

Don't Miss

UAE delegation attends G20 GPFI meeting

The purpose of the meeting was to discuss the progress

Arab Stock Markets Secure Record Gains in 2023; UAE, Saudi Lead

The UAE led the charge, adding $117.5 billion to its