UAE rolls over $2 billion loan of Pakistan

ISLAMABAD: The United Arab Emirates (UAE) has extended the repayment deadline of a $2 billion loan to Pakistan for another year.

The loan was originally granted in 2019 as part of a $6 billion financial assistance package that the UAE offered to Pakistan to help it cope with its balance of payments crisis.

Pakistan was supposed to pay back the loan in January 2024, but the UAE agreed to roll it over after receiving a request from the caretaker Prime Minister Anwarul Haq Kakar.

The rollover will provide some relief to Pakistan, which is facing a severe economic downturn amid fresh Covid-19 pandemic and political instability.

Pakistan’s foreign exchange reserves have fallen by more than 25% in the past two weeks, and the country is seeking more loans from international lenders to stabilize its currency and meet its debt obligations.