A media report said on Friday that Pakistan will repay a loan worth two billion dollars to the United Arab Emirates by the end of this month.“The UAE recently requested the immediate return of the funds following the recent situation in the Middle East following the US-Israeli war on Iran,” sources told Geo News, citing PTI.
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The loan was provided to support Pakistan’s balance of payments, and the amount was kept with the State Bank of Pakistan as a safe deposit. Pakistan is paying about 6 percent interest on the amount, insiders said.In the past, the UAE used to renew the deposit on an annual basis. However, in December 2025, the amount was extended first by one month and then by two months until April 17.For the current fiscal year, Pakistan has requested a replenishment of nearly $12 billion in external deposits, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the United Arab Emirates.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.