UAE rolls over $2 billion loan to Pakistan

ISLAMABAD: In response to a formal request from Pakistan, the United Arab Emirates (UAE) has extended a $2 billion loan for a one-year period, sources said.

This development arises from Pakistan’s request to the UAE for the extension of a $2 billion loan, set to mature in the current month of January.

Caretaker Prime Minister Anwaar-ul-Haq Kakar drafted a letter addressed to UAE President Sheikh Mohammed bin Zayed al-Nahyan, formally seeking the rollover of the loan.

In the broader context, the UAE had initially deposited $3 billion in the State Bank of Pakistan, with $1 billion maturing on January 17 and another $1 billion maturing on January 23, according to the sources.

Notably, on January 18, 2023, the UAE had previously extended the rollover of Pakistan’s $2 billion loan upon the request of then-Prime Minister Shehbaz Sharif, who had also held a meeting with the President of the UAE.

As of the latest financial update, Pakistan’s total liquid foreign reserves have risen to $13,256.6 million, with the State Bank holding $8,154.8 million.

It is worth mentioning that the Executive Board of the International Monetary Fund (IMF) has completed the first review of Pakistan’s economic reform program supported by the Stand-By Arrangement (SBA).

The approval from the Board enables an immediate disbursement of SDR 528 million (approximately US$700 million), bringing the total disbursements under the SBA to US$1.9 billion, according to a news release from the Finance Ministry.