UAE rolls over $2bln loan to Pakistan for another year

The UAE has agreed to extend a $2 billion loan to Pakistan by another year, giving the Asian country a reprieve as it engages in discussions with the International Monetary Fund (IMF) for the release of a $1.2 billion loan tranche.

The extension was confirmed Pakistan’s federal institution, which posted the news on X, writing: “UAE has confirmed rollover of its two deposits of $1.0 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024.”

The news comes in the same week IMF approved a $700 million loan for Pakistan, contributing to a total disbursement of $1.9 billion under a larger $3 billion bailout programme, which will address domestic and external balances and provide a framework for financial support from multilateral and bilateral partners.

A corresponding IMF report stated that while economic activity has stabilised in Pakistan, the outlook remained ‘challenging’ and was dependent on the implementation of sound policies.

In a statement, Antoinette Sayeh, IMF Deputy Managing Director and Chair, said Pakistan’s programme performance under the Stand-By Arrangement has supported significant progress in stabilising the economy following significant shocks in FY2022-23.

source: zawya