ISLAMABAD – Pakistan has decided to repay a $2 billion loan to the United Arab Emirates by the end of this month (April 2026).
The amount had been held in Pakistan’s account as a safe deposit.
Reports stated that the Ministry of Finance confirmed that Pakistan was paying interest at a rate of 6 percent on the loan.
Previously, the UAE had rolled over the amount annually, with shorter rollovers of one and two months in December 2025.
Reports added that the current international financial situation following the US-Israel war against Iran prompted the UAE to request immediate repayment.
Pakistan, meanwhile, has arranged alternative funding at lower interest rates from the commercial market.
The Ministry of Finance has official responded to speculation and commentary in some section of the media regarding the Government of Pakistan’s external flows.
“…it may be noted that Ministry of Finance is continuously monitoring and managing Pakistan’s external flows in order to ensure stable foreign exchange reserves. The Government of Pakistan remains committed to fulfilling all its external obligations,” read the official statement.
