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CAIRO/KARACHI - The United Arab Emirates (UAE) on Thursday committed $10 billion to invest in promising economic sectors in Pakistan, Islamabad said.
Pakistan has been pushing for foreign investment in a bid to shore up its $350 billion economy, which has struggled with high inflation and low growth as it navigates a tough reforms mandated by the International Monetary Fund (IMF).
The investment pledge, also announced by the Emirati state news agency (WAM), came after a meeting between Pakistani Prime Minister Shehbaz Sharif, on a two day visit to the UAE, met President Sheikh Mohamed bin Zayed Al Nahyan.
"President of the UAE His Highness Sheikh Mohamed bin Zayed Al Nahyan assured (Pakistan of) the UAE's support in all circumstances and made the commitment of investing US $10 billion in multiple sectors," a statement from Pakistan's Prime Minister's Office said.
It did not specify which areas the investment would be in.
The statement said Sharif emphasised strengthening strategic partnerships, including in the field of information technology, renewable energy and tourism.
Pakistan needs foreign investment to boost its economy and shore up its currency reserves to meet rising external repayment obligations. It is in talks with the IMF to secure a long term bailout deal, expected to go as high as $8 billion.
An IMF team is in Pakistan to discuss the country's budget and economic recovery policies after the country successfully completed a short term $3 billion IMF bailout programme last month.
(Reporting by Jana Choukeir and Yomna Ehab, and Gibran Peshimam in Karachi, Pakistan; Writing by Enas Alashray; Editing by Philippa Fletcher)