UAE extends $2B loan rollover to Pakistan for two months

The United Arab Emirates has extended the rollover of a $2 billion loan to Pakistan for an additional two months, providing temporary financial relief as the government works to complete a key economic review with the International Monetary Fund, officials said Friday.

According to Finance Ministry sources, the UAE agreed to roll over the $2 billion deposit until April 16 and April 22, respectively.

The loan had previously been extended for one month with maturities set for Feb. 16 and Feb. 22.

The government had requested the UAE to roll over the loan for two years.

Officials said the government has urged the UAE to lower the interest rate on the loans. The current interest rate stands at around 6.5%.

After the initial request, Islamabad again sought an extension of the $2 billion facility to help ensure the successful completion of the IMF’s economic review.

Officials said the government aims to finalize the rollover process to strengthen its position ahead of the IMF review.

Following the successful completion of the review, Pakistan plans to engage in further discussions with the UAE regarding a longer-term extension.

Pakistan has relied on financial support from friendly countries, including the UAE, to stabilize its foreign exchange reserves and meet external financing requirements under its IMF program.