The United Arab Emirates (UAE) has agreed to extend Pakistan’s $2 billion loan for one month, with the original maturity having fallen in January.
Sources said the temporary extension will run until February 2026, while Pakistan has requested an additional one-year rollover.
The UAE currently holds $3 billion in a safe deposit with the State Bank of Pakistan, with a further $1 billion rollover expected in July. The loan extension was also communicated to the International Monetary Fund (IMF) as part of Pakistan’s ongoing financial program.
Reports suggested that the interest rate on the UAE loan is likely to exceed 6.5 percent, with ongoing discussions between the Prime Minister’s Office, Ministry of Finance, and UAE officials.
This latest loan extension is part of Pakistan’s broader strategy to manage foreign debt and stabilize its economy.
For the current fiscal year, the government is targeting the rollover of $12 billion in total debt, with plans in place for additional rollovers from China, Saudi Arabia, and the UAE as part of its foreign exchange reserve management strategy.
Source: Dunya News
