Pakistan will repay a $2 billion loan to the United Arab Emirates (UAE) by the end of this month, a media report said on Friday.“The UAE recently asked for the immediate return of the funds in the wake of the recent situation in the Middle East following the US-Israel war on Iran,” sources told Geo News, as quoted by PTI.
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The loan had been provided to support Pakistan’s balance of payment, and the amount was kept with the State Bank of Pakistan (SBP) as a safe deposit. Insiders said Pakistan has been paying around 6 per cent interest on the amount.In the past, the UAE used to roll over the deposit on a yearly basis. However, in December 2025, the amount was first extended for one month and then for two months until April 17.For the current fiscal year, Pakistan required a rollover of approximately $12 billion in external deposits, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion placed by the UAE.Pakistan currently holds more than $21 billion in reserves and will be able to repay the UAE, but it may need external financing in the coming months.
