Abu Dhabi, April 4: Pakistan will repay a USD 2 billion loan to the United Arab Emirates on its request, according to a media report on Friday. The funds were originally provided by the UAE to support Pakistan’s balance of payments and had been rolled over regularly until recently. However, sources said the UAE sought immediate repayment amid the evolving situation in the Middle East following the US Israel war on Iran.
According to Geo News, the amount was held as a safe deposit with the State Bank of Pakistan. Pakistan is expected to return the USD 2 billion to Abu Dhabi by the end of this month.
Sources added that Pakistan has been paying around 6 per cent interest on the deposit. In the past, the UAE rolled over the funds annually, but in December 2025, the extension was first granted for 1 month and then for 2 months until April 17.
For the current fiscal year, Pakistan required a rollover of about USD 12 billion in external deposits, including USD 5 billion from Saudi Arabia, USD 4 billion from China and USD 3 billion from the UAE. Pakistan currently holds more than USD 21 billion in reserves and will proceed with the repayment, though it may require external financing in the coming months. (Agencies)
