Islamabad (Web Desk): Islamabad: Pakistan has taken a final decision to repay a $2 billion loan obtained from the United Arab Emirates (UAE) by the end of the current month, according to official sources.
The amount, which had been placed with Pakistan as a “safe deposit” by Abu Dhabi, is now being prepared for full repayment by the Ministry of Finance.
Sources said Pakistan had been paying an annual interest rate of around 6 percent on the substantial deposit.
In previous years, the UAE had routinely extended the repayment period on a yearly basis through rollovers, providing critical support to Pakistan’s foreign exchange reserves.
The report noted that in December 2025, the loan was first extended for one month and then for an additional two months.
However, amid the prevailing global economic conditions and shifting financial priorities, the UAE has this time requested immediate repayment instead of granting another extension.
Responding positively to the request of the friendly country, the Government of Pakistan has assured that the full $2 billion will be returned before the end of this month.
Financial experts believe that timely repayment will strengthen Pakistan’s international financial credibility and reinforce the perception of transparency and reliability in its dealings with partner countries.