ISLAMABAD – Another boost for Pakistan as United Arab Emirates stepped in with timely support by rolling over $2 billion in loans for another month.
Reports in local media said the $2 billion amount already matured last month, raising concerns over Pakistan’s foreign exchange position, and the Gulf nation now approved another extension, easing short-term pressure on the country’s finances.
Another billion loan is due to mature in July, and Islamabad reportedly formally requested Abu Dhabi to roll over entire $3 billion loan package for a full year. The country of 242 million asked that all three tranches be rolled over together.
Officials say UAE currently holds $3 billion as deposits with State Bank of Pakistan, underlining Abu Dhabi’s key role in supporting Pakistan’s external reserves during a challenging economic phase.
This latest move by UAE is being seen as key vote of confidence in Pakistan, providing breathing space as Islamabad navigates fiscal reforms, IMF conditions, and mounting external obligations.
Economic watchers say the coming weeks will be decisive, as Pakistan awaits a response on its request for a one-year rollover of the full $3 billion, a decision that could dramatically shape the country’s financial outlook.
