Pakistan Decides to Repay $2 Billion Loan to UAE

|April 3, 2026

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Pakistan has decided to repay a $2 billion loan to United Arab Emirates by the end of this month, according to sources from the Ministry of Finance.

The amount was held in Pakistan’s account as a safe deposit, and the country was paying approximately 6% interest on it. Previously, the UAE had been rolling over the loan on a yearly basis. However, in December 2025, the repayment period was first extended for one month and then for an additional two months.

Sources revealed that due to the current international situation, the UAE has now requested immediate repayment of the funds.

The development comes amid ongoing economic challenges and shifting global conditions, putting additional pressure on Pakistan’s financial management.

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