$2 Billion Loan
DUBAI: The United Arab Emirates (UAE) is anticipated to extend the rollover of a $2 billion loan to Pakistan for one year, according to sources. Caretaker Prime Minister Anwaar-ul-Haq Kakar has reportedly written a letter to UAE President Sheikh Mohammed bin Zayed al-Nahyan, formally seeking the loan rollover. Sources indicate that the Ministry of Finance is confident in successfully negotiating and finalizing the $2 billion debt deferral within the current week.
The UAE has maintained a total of $3 billion as a safe deposit in the State Bank of Pakistan, with $1 billion maturing on January 17 and another $1 billion on January 23. Pakistan is optimistic about the timely rollover of the loan from the UAE.
It’s noteworthy that on January 18, 2023, the UAE had previously rolled over Pakistan’s loan of $2 billion upon the request of then-Prime Minister Shehbaz Sharif, who had also held a meeting with the Emirates president.
As of January 5, 2024, the foreign currency reserves held by the State Bank of Pakistan were recorded at $8.155 billion, reflecting a decrease of $66 million compared to the reserves on December 29, 2023. Despite this, the central bank reserves have witnessed an overall increase of over $1 billion in recent sessions.
The potential extension of the loan rollover signifies continued financial cooperation between Pakistan and the UAE, contributing to the stability of Pakistan’s foreign currency reserves. The outcome of the ongoing negotiations is awaited with expectations of a positive resolution within the week.
