UAE likely to rollover $2 billion loan to Pakistan: sources

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

“Ministry of Finance are confident that the $2 billion debt deferral will be successfully negotiated and finalized within this week,” say sources.

Overall UAE kept $3 billion as a safe deposit in the State Bank of Pakistan out of which $1bn is getting mature on January 17 and the other $1 bn will mature on January 23, the sources said.

Pakistan is hoping for the rollover of the loan from UAE soon.

Read more: UAE rolls over $2bn loan to Pakistan: Ishaq Dar

It is to be noted that UAE on January 18, 2023, also rolled over Pakistan’s loan of $2 billion on the then-prime minister Shehbaz Sharif’s request, who also held a meeting with the Emirates president.

On January 5, 2024, the foreign currency reserves held by the SBP were recorded at $8.155 billion, down $66 million compared to $8.221 billion on December 29, 2023.

The central bank reserves have increased by over $1 billion over the last few sessions.