Pakistan Seeks $2 Billion Loan Rollover from UAE

Pakistan has requested the United Arab Emirates (UAE) to rollover a $2 billion loan, sources in the Ministry of Finance told ProPakistani on Tuesday. According to sources, Prime Minister Anwaar-ul-Haq Kakar has written a letter to the President of the UAE in this regard. Sources said that the UAE placed safe deposits of $3 billion with the State Bank of Pakistan (SBP). Out of the total, an amount of $1 billion was set to mature on January 17, 2024, while another $1 billion will mature on January 23. The country is paying interest at the rate of 3 percent on $1 billion while the interest rate on the other $1 billion deposit is 6.5 percent. Sources said that it is likely that the UAE will rollover the entire amount of $2 billion in the coming days. It is pertinent to mention here that the liquid foreign exchange reserves held by the State Bank of Pakistan have strengthened in recent weeks. On December 29, the foreign currency reserves held by the SBP were recorded at $8.221 billion. The central bank reserves have increased by over $1.3 billion over the last two weeks.