Pakistan Swaps UAE Debt for Fauji Foundation Equity, Sparks Transparency Concerns

• Pakistan converts $1 billion of UAE's deposit into equity in the army-run Fauji Foundation to reduce external debt.
• Deputy PM Ishaq Dar confirmed the deal, aiming to complete it by March 31, alongside a $2 billion loan rollover.
• The deal raises concerns as a state liability is transferred to Fauji Foundation, a "private" entity controlled by Army Chief Asim Munir.
• Critics like Ayesha Siddiqa question the legality and transparency, noting Fauji Foundation is not subject to public auditing.
• The move highlights Pakistan's reliance on external support amid high debt, potentially giving Munir more economic influence.

Why It Matters: Pakistan's debt-for-equity swap with UAE in Fauji Foundation sparks legal and transparency questions.