KalPay Secures Investment To Expand Inclusive Credit
December 29, 2025
Pakistan and the United Arab Emirates have agreed on a major economic cooperation package under which Pakistan will transfer shares of companies within the Fauji Group to the UAE in return for a one billion dollar deposit.
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Deputy Prime Minister and Foreign Minister Senator Mohammad Ishaq Dar announced the agreement, describing it as part of a broader framework finalised during the recent visit of the UAE President to Pakistan. Under the arrangement, Pakistan will transfer stakes in various Fauji Foundation Group, with the transaction expected to be completed by March 31, 2026.
Dar also confirmed that two billion dollars from a previously extended three billion dollar UAE soft loan will be converted into long term productive investment in Pakistan. The funds were released in phases and are now being formalised as investment to support economic activity and growth.
He said the agreements are intended to provide immediate financial support while strengthening long term bilateral cooperation, calling the arrangement “designed to provide immediate financial support while deepening our long term partnership.” Officials said the package covers multiple sectors and forms part of efforts to enhance trade, attract foreign investment and stabilise Pakistan’s financial position.
The announcements come as Pakistan works to improve investor confidence and align foreign partnerships with both short term financing needs and long term economic development.
