Karachi, Pakistan – Web Desk: Pakistan has finalized arrangements to fully repay its outstanding loans from the United Arab Emirates (UAE), totaling $3.5 billion, as part of a major debt clearance effort this month.
According to officials, Pakistan has already transferred $45 million to the UAE, covering part of a $3.5 billion debt taken between 1996 and 2023. The repayment schedule includes $2 billion on April 17 and $1 billion on April 23.
The loans comprise $2 billion borrowed in 2018 and an additional $1 billion in deposits from the UAE in 2023. Pakistan had previously rolled over these loans at an annual interest rate of 6.5%.
Officials emphasized that the country’s foreign exchange reserves, currently at $16.4 billion at the State Bank of Pakistan, are sufficient to cover these payments. Additionally, arrangements have been made to pay $1.3 billion towards Eurobond obligations.
This move signals Pakistan’s commitment to maintaining financial credibility and strengthening bilateral ties with the UAE, amid ongoing economic stabilization efforts.
