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.
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.