US EditionPakistan to repay $2 billion UAE loan by month‑end following Abu Dhabi’s demand
- Pakistan decided to return $3.5 billion in debt to the United Arab Emirates before the end of this month, a senior Pakistani official said on Friday.
- The UAE recently requested immediate return of the funds following the US-Israel war on Iran, ending critical deposits that stabilized Pakistan's balance of payments since 2019.
- Repaying $3 billion will reduce Pakistan's central bank reserves by 18 per cent, significantly lowering external buffer, while the country has been paying around 6% interest on the loan.
- A senior official stated the repayment was a cost to uphold "national dignity," while the Finance Ministry noted the government remains committed to fulfilling all external obligations.
- Pakistan requires around $12.5 billion in rollovers from China and Saudi Arabia under its International Monetary Fund program to meet external financing needs, with no immediate replacement financing indicated.
15 Articles
15 Articles
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.
Pakistan to return $3.5bn UAE debt before month end: official
ISLAMABAD: Pakistan has decided to return $3.5 billion in debt to the United Arab Emirates (UAE) before the end of this month, a senior Pakistani official said on Friday. The official described the move as a cost the country was willing to bear to uphold “national dignity,” even as it is set to significantly draw down foreign exchange reserves. The official disclosed that Abu Dhabi had sought the immediate return of the amount. “The amount wil…
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