UAE rolls over $2 billion loan to Pakistan

ISLAMABAD: Following a request from Pakistan, United Arab Emirates (UAE) has rolled over $2 billion for one year to Pakistan, ARY News reported citing sources.

The development came after Pakistan ‘requested’ United Arab Emirates (UAE) for rollover of $2 billion loan, which is getting mature in the current month of January.

Caretaker Prime Minister Anwaar-ul-Haq Kakar penned a letter to the UAE President Sheikh Mohammed bin Zayed al-Nahyan, seeking rollover of the loan.

Overall UAE kept $3 billion as a safe deposit in the State Bank of Pakistan out of which $1bn is getting mature on January 17 and the other $1 bn will mature on January 23, the sources said.

UAE has confirmed rollover of its two deposits of US$1.0 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024.#SBP

— SBP (@StateBank_Pak) January 17, 2024

UAE on January 18, 2023, also rolled over Pakistan’s loan of $2 billion on the then-prime minister Shehbaz Sharif’s request, who also held a meeting with the Emirates president.

Last week, the total liquid foreign reserves of Pakistan increased to US$ 13,256.6 million while reserves held by State Bank reached $ 8,154.8 million.

Read more: Pakistan receives $700mn loan tranche from IMF

It is pertinent to mention here that the Executive Board of the International Monetary Fund (IMF) completed the first review of Pakistan’s economic reform programme supported by its Stand-By Arrangement (SBA).

“The Board’s approval allows for an immediate disbursement of SDR 528 million (around US$ 700 million), bringing the total disbursements under the SBA to US$ 1.9 billion,” a Finance Ministry news release said.