Pakistan is set to request the United Arab Emirates (UAE) for the rollover of a $1 billion loan before its maturity period.
According to official sources, the finance ministry has finalized the necessary preparations, and Prime Minister Shehabz Sharif is expected to send a formal request to UAE President Sheikh Mohammed bin Zayed al-Nahyan for the loan extension.
It has been reported that UAE had deposited $3 billion as a safe deposit in the State Bank of Pakistan, out of which $2 billion has already been rolled over at Pakistan’s request. Now, Pakistan intends to seek a rollover for the remaining $1 billion.
Currently, Pakistan is paying an interest rate ranging from 3 to 6.5 percent on the entire $3 billion safe deposit from the UAE.
In the forthcoming letter, Prime Minister Shehbaz Sharif will express gratitude to the UAE for its continuous support to Pakistan and will formally request the rollover of $1 billion under the existing terms and conditions.
Pakistan is hopeful for a positive response from the UAE regarding the loan rollover.
It is noteworthy that on January 18, 2023, the UAE had also extended Pakistan’s loan of $2 billion at the request of then-Prime Minister Shehbaz Sharif, who had held discussions with the Emirates president on the matter.
