Pakistan has formally requested the United Arab Emirates (UAE) to extend the maturity of a $2 billion loan, according to insider information from the Ministry of Finance disclosed to press on Tuesday.
Pakistan has officially sought a $2 billion loan extension from the United Arab Emirates (UAE).
Sources reveal that Prime Minister Anwaar-ul-Haq Kakar has penned a letter to the UAE President concerning this matter. It is noted that the UAE had previously placed secure deposits totaling $3 billion with the State Bank of Pakistan (SBP). Out of this sum, $1 billion was scheduled to mature on January 17, 2024, while another $1 billion was set to mature on January 23. Pakistan is currently servicing the interest on the $1 billion deposit at a rate of 3 percent, while the interest rate on the remaining $1 billion is 6.5 percent. It is anticipated that the UAE may opt to rollover the entire $2 billion in the coming days.
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It is worth mentioning that the liquid foreign exchange reserves held by the State Bank of Pakistan have seen a notable strengthening in recent weeks. As of December 29, the SBP’s foreign currency reserves stood at $8.221 billion, reflecting an increase of over $1.3 billion in the past two weeks.
