Pakistan formally requests UAE to roll over $3b loan

ISLAMABAD: Pakistan has formally requested the United Arab Emirates (UAE) to roll over a $3 billion loan before its maturity.

According to sources in the Ministry of Finance, Prime Minister Shehbaz Sharif sent a letter to UAE leadership requesting the rollover of the loan, which is due for repayment in two installments — $2 billion this month and $1 billion in July.

The $3 billion loan was deposited with the State Bank of Pakistan in 2021, with $1 billion due in the second week of January and another $1 billion installment due in the third week of January.

Sources confirmed that the government is seeking a rollover for all three installments before their maturity, and it is expected that the roll-over process will be completed on time.

Furthermore, Pakistan has assured the International Monetary Fund (IMF) that the UAE will honour the roll-over commitment throughout the loan program.

This year, Pakistan expects to roll over a total of $12 billion in loans from the UAE, Saudi Arabia, and China.