UAE Extends $2 Billion Loan to Pakistan, Confirms Central Bank
Pakistan’s central bank announced on Thursday that the United Arab Emirates has confirmed the extension of its two $1 billion deposits each with the State Bank of Pakistan for an additional year.
These deposits were set to mature this month.
Earlier in January, the Prime Minister of Pakistan, Shehbaz Sharif, mentioned that the UAE had agreed to roll over the $2 billion payment due this month.
Sharif stated that he met with UAE President Sheikh Mohammed bin Zayed Al Nahyan during a personal visit to Pakistan.
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“In a one-on-one meeting, he indicated…there is a $2 billion repayment due, and we are extending this,” Sharif informed reporters during a televised press conference.
“I requested the UAE to invest a few billion dollars in significant investment projects, which would be beneficial,” Sharif continued.
“He mentioned that the UAE was dedicated to this investment and that the two countries share fraternal ties,” he added.
Obtaining external financial support has historically been a crucial requirement for the International Monetary Fund (IMF) to approve bailout agreements for the financially troubled nation.
The IMF’s subsequent evaluation of its $7 billion, 37-month loan program to Pakistan is anticipated in February.
Pakistan’s $350 billion economy has faced challenges for decades, characterized by cycles of prosperity and downturn, requiring 23 IMF bailouts since 1958.
