The United Arab Emirates (UAE) is anticipated to extend the term of a $2 billion loan to Pakistan for an additional year.
Caretaker Prime Minister Anwaar-ul-Haq Kakar has reached out to UAE President Sheikh Mohammed bin Zayed al-Nahyan, formally requesting the rollover of the loan. Sources indicate that the Ministry of Finance expresses confidence in successfully negotiating and finalizing the $2 billion debt deferral within the current week.
The UAE has maintained a secure deposit of $3 billion in the State Bank of Pakistan, with $1 billion set to mature on January 17 and the remaining $1 billion on January 23, as per insider information.
Pakistan is optimistic about the timely rollover of the loan from the UAE. It is noteworthy that on January 18, 2023, the UAE previously agreed to extend Pakistan’s $2 billion loan upon the request of then-Prime Minister Shehbaz Sharif, who held a meeting with the President of the Emirates.
