Pakistan decides to repay $3.5 billion UAE debt this month

ISLAMABAD: Pakistan has decided to repay $3.5 billion in debt owed to the United Arab Emirates during the current month, a senior cabinet minister said at a background briefing on Friday.

The minister said the move had been approved by the country’s political leadership, bringing clarity to questions surrounding the liability after Abu Dhabi had begun extending the debt for only one month at a time.

The government has now opted to return the full amount instead of continuing with the short-term rollover arrangement that had prompted uncertainty over the debt’s future.

During the briefing with anchorpersons at his office, the minister said, The political leadership has decided to pay back the entire UAE debt.

The development marks a significant decision in Pakistan’s external debt management, as the amount involved stands at $3.5 billion.

The decision effectively ends speculation over the fate of the debt, particularly because the UAE had started rolling it over for one month only. The minister’s remarks were presented as the basis for the update.

Briefing on debt decision

The key point conveyed in the briefing was that Pakistan’s leadership had taken a final decision on the UAE debt and that the full amount would be paid back this month. the decision as one that closes ongoing speculation over the status of the liability.

The political leadership has decided to pay back the entire UAE debt.