UAE rolls over $2 billion loan to Pakistan, SBP says

The State Bank of Pakistan (SBP) on Thursday said that the United Arab Emirates (UAE) has confirmed rollover of its two deposits of $1 billion each for another year. The deposits were maturing in January 2025.

Prime Minister Shehbaz Sharif had confirmed on Tuesday that the Gulf nation rolled over a $2 billion loan deposit, granting Pakistan a substantial fiscal respite.

PM Shehbaz had met UAE President Sheikh Mohamed bin Zayed Al Nahyan in Rahim Yar Khan, where the Gulf nation's top leader proposed rolling over the loan.

"He happily informed me that $2 billion owed by Pakistan in January was being extended by the UAE. He proposed it himself and immediately issued [directives as well]," the prime minister said.

The prime minister said the UAE president vowed to back Pakistan in its bid for economic stability based on the nations' historic brotherly ties.

Prime Minister Shehbaz also described his meeting with the UAE president as positive and productive, noting that discussions centred on investment opportunities.

Shehbaz emphasised measures aimed at enhancing mutual ties and revealed that a specific goal had been set. "This target will create a favourable impression regarding investment," he added.

Pakistan's foreign exchange reserves stand at $16.45 billion as of January 10, with SBP-held reserves at $11.73 billion.