Pakistan will repay a $2 billion loan to the UAE by the end of this month after Abu Dhabi demanded early repayment. The funds were held at the State Bank of Pakistan.<\/p>\n
Pakistan has decided to repay a loan of USD 2 billion to the United Arab Emirates (UAE) on its demand, a media report said on Friday.<\/p>\n
The UAE had provided the fund to support the balance of payment, and it was being rolled out until recently.<\/p>\n
The UAE recently asked for the immediate return of the funds in the wake of the recent situation in the West Asia following the US-Israel war on Iran, sources said.<\/p>\n
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Citing sources, Geo News reported that the amount was kept with the State Bank of Pakistan (SBP) as a safe deposit.<\/p>\n
Pakistan will return USD 2 billion to Abu Dhabi by the end of this month, it added.<\/p>\n
The insiders said Pakistan has been paying around 6 per cent interest on the amount. In the past, the UAE used to roll over the deposit on a yearly basis. However, in December 2025, the amount was extended first for one month and then for two months until April 17.<\/p>\n
For the current fiscal year, Pakistan needed a rollover of approximately USD 12 billion in external deposits, including USD 5 billion from Saudi Arabia, USD 4 billion from China and USD 3 billion placed by the UAE.<\/p>\n
Pakistan has more than USD 21 billion in reserves and will pay back to the UAE, but it may need external financing in the coming months.<\/p>\n
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