Pakistan to seek rollover of US$3 billion UAE loan

ISLAMABAD: The Pakistan government to seek roll over a $3 billion loan from the United Arab Emirates (UAE), official sources said.

“Prime Minister Shehbaz Sharif will write a letter to the President UAE Sheikh Mohamed bin Zayed Al Nahyan requesting to him for the rollover of three tranches amounting to US $3 billion before their maturity dates.

Sources in the Ministry of Finance has said that the ministry has completed its working and the PM will soon request to the UAE authorities for rollover of US$ 3 billion loan.

The Gulf country has deposited total US$ 3 billion in the State Bank of Pakistan being used for the balance of payment, sources said.

Officials said that a $1 billion tranche will mature on January 17, while another $1 billion to mature on January 23. The next $1 billion is expected to mature in July this year.

The government will request the UAE authorities for rollover of all three loan installments, amounting to $3 billion.

Officials said Pakistan is currently paying 3 to 6.5 per cent interest rate on the overall $3 billion safe deposit of the United Arab Emirates in the central bank, which could enhance above 6.5 per cent interest.