US EditionPakistan to repay $2 billion UAE loan by month‑end following Abu Dhabi’s demand
Abu Dhabi demanded immediate repayment as Pakistan’s central bank reserves stood near $16.3 billion, officials said.
- On Friday, Pakistan decided to repay $2 billion to the United Arab Emirates by the end of this month, following Abu Dhabi's demand for immediate settlement of the deposit held with the State Bank of Pakistan.
- Geopolitical tensions in the Middle East following the US-Israel war on Iran prompted the UAE to demand repayment, ending annual rollovers that had shifted to short-term extensions in recent months.
- Pakistan has been paying approximately 6% interest on the deposit, while repaying the $2 billion will reduce central bank reserves—currently about $16.3 billion—by 18 per cent, significantly lowering the external buffer.
- Officials stated the repayment is a cost to uphold "national dignity," while the Finance Ministry affirmed it is "continuously monitoring and managing Pakistan's external flows" to ensure stable reserves.
- Under its ongoing International Monetary Fund programme, Pakistan must secure around $12.5 billion in rollovers from key partners—China and Saudi Arabia—to maintain reserve levels and meet external financing needs.
28 Articles
28 Articles
UAE asks Pakistan to pay back USD 2 billion loan immediately as conflict rages on in West Asia
Pakistan will repay a USD 2 billion loan to the United Arab Emirates on its request, according to a media report on Friday. The funds were originally provided by the UAE to support Pakistan’s balance of payments and had been rolled over regularly until recently. However, sources said the UAE sought immediate repayment amid the evolving situation in the Middle East following the US Israel war on Iran. According to Geo News, the amount was held as…
Pakistan To Repay $3.5 Billion To UAE This Month Amid Strained Ties: Report
New Delhi, April 4 (IANS) Pakistan’s already weak economy is coming under fresh pressure as the country prepares to repay $3.5 billion to the United Arab Emirates this month, even as relations between the two sides show signs of strain.
Times of India
The Economic TimesPakistan to repay USD 2 billion loan to UAE on its demand: Report
Pakistan will return two billion US dollars to the United Arab Emirates by the end of this month. The UAE had provided the funds to support Pakistan's balance of payment. This repayment comes after the UAE requested the immediate return of the money. Pakistan has over twenty-one billion US dollars in reserves.
Amid the ongoing conflict in the Middle East, the UAE has demanded the immediate return of billions of dollars in loans from Pakistan. This loan was provided to Pakistan to support its balance of payments and carries an interest rate of approximately 6 percent.
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