ISLAMABAD (Dunya News) – The United Arab Emirates (UAE) has agreed to roll over Pakistan's $2 billion loan for a period of one month, with the loan's maturity initially set for January.
Sources said the temporary extension will last until February 2026, while Pakistan has requested an additional one-year rollover.
Currently, the UAE holds a total of $3 billion in safe deposit with State Bank of Pakistan, and a further rollover of $1 billion is expected in July.
This loan rollover was also assured to the International Monetary Fund (IMF) as part of Pakistan's ongoing loan program.
Reports suggested that the interest rate on the UAE loan is likely to exceed 6.5 percent, with ongoing discussions between the Prime Minister's Office, Ministry of Finance, and UAE officials.
This latest loan extension is part of Pakistan’s broader strategy to manage foreign debt and stabilize its economy.
For the current fiscal year, the government is targeting the rollover of $12 billion in total debt, with plans in place for additional rollovers from China, Saudi Arabia, and the UAE as part of its foreign exchange reserve management strategy.