Pakistan has decided to repay all of its $3.5 billion loans from the United Arab Emirates within this month.
Sources report that Pakistan has arranged to return $3.5 billion to the UAE, with $450 million scheduled to be paid this week. This loan was originally taken between 1996 and 1997.
Officials stated that Pakistan will repay the remaining $3 billion later this month, including $2 billion on April 17 and another $1 billion on April 23.
Pakistan had previously borrowed $2 billion from the UAE in 2018 and obtained an additional $1 billion in deposits from the UAE in 2023. The loans were being rolled over with an annual interest rate of 6.5%.
Authorities have confirmed that Pakistan’s foreign exchange reserves are sufficient to cover the repayment. The State Bank currently holds $16.4 billion in foreign reserves. Pakistan is also arranging payment for a €1.3 billion Eurobond.
