Islamabad, January 18: The United Arab Emirates (UAE) has agreed to roll over its $2 billion loan to Pakistan for another year, providing a boost to the country’s foreign exchange reserves.
The State Bank of Pakistan (SBP) announced on Wednesday that the UAE deposits of $1 billion each, originally due to mature in January 2024, will now be extended for an additional 12 months.
Acting Prime Minister Anwaar-ul-Haq Kakar had written to the UAE President requesting an extension of the loan. The rollover was subsequently confirmed by the Gulf nation.
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The development comes as Pakistan continues to shore up its foreign currency reserves to ensure financial stability. Earlier, the SBP had received the second tranche of $705.6 million from the IMF as part of the $3 billion Stand-By Arrangement.
Economic experts have termed the UAE’s extension of bilateral financial support as a positive indicator of continued confidence in Pakistan’s economy. The loan rollover will help relieve pressures on the country’s balance of payments position.
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