Date:26/11/2008 URL: http://www.thehindu.com/2008/11/26/stories/2008112656041500.htm

International

Pakistan, UAE aim at long-term tie-ups

Atul Aneja

DUBAI: Pakistan and the UAE have decided to establish a long-term partnership in the fields of energy, agriculture and telecommunications.

During his two-day visit to Abu Dhabi, Pakistan President Asif Ali Zardari held discussions with Mohammed Saif Al Suwaidi, Director-General of the Abu Dhabi Fund for Development (ADFD). “We agreed during the meeting that the Pakistani government will provide a list of projects that are proposed to be financed by the ADFD,” UAE’s official news agency WAM quoted Mr. Al Suwaidi as saying.

Mr. Al Suwaidi’s remarks are consistent with the approach adopted by the international grouping called the “Friends of Pakistan.” During its meeting in Abu Dhabi on November 17, the group had charted out a work plan that covered support for specific projects in Pakistan. It also considered measures that would impart financial stability to Pakistan as well encourage peace and stability in the region. Mr. Zaradari’s meetings on Tuesday have coincided with the announcement by the IMF that it had approved a $7.6 billion stand-by loan for Pakistan to meet its immediate financial requirement and help it avoid defaulting on its debt. Pakistan would get immediate access to around $3.1 billion. The rest would be disbursed within 23 months, based on the quarterly reviews that the fund would undertake.

Analysts say that following the IMF approval, seen as a vote of confidence in Pakistan’s economy, Islamabad is hoping to attract bilateral foreign aid from allies such as the U.S. and China.

Talks in Abu Dhabi covered details about a partnership in the oil and gas sector. The Pakistan-Arab Refinery Company and UAE’s International Petroleum Investment Company are partners in developing Pakistan’s oil sector. In 2007, the two had decided to develop a $5-billion refinery in Balochistan.

UAE’s Dana gas is also keen to build a liquefied natural gas terminal in Pakistan. On agriculture, the UAE’s Al Dahra company is investing $40 million to develop 18,000 acres of land for wheat, cotton and pulses near the Mirani dam in Balochistan.