Islamabad: Pakistan has submitted a request to the United Arab Emirates (UAE) for the rollover of a $2 billion loan.
According to reports, the Ministry of Finance has conveyed that Pakistan has requested a rollover of a $2 billion loan from the United Arab Emirates. In this regard, the Pakistani federal government has formally written a letter to the President of the UAE.
As per the report, the repayment of the $2 Billion loan obtained from the UAE is scheduled for January 17, with an interest rate of 3%. Additionally, another amount of $1 billion, with an interest rate of 6.5%, is part of the request for rollover.
The UAE has deposited a total of $3 billion in the State Bank of Pakistan, out of which $2 billion was set to mature on January 17, 2024.
The UAE is expected to approve Pakistan’s request for a rollover of its loan in the coming days, according to sources.
Pakistan’s foreign exchange reserves have shown improvement, reaching $8.221 billion as of December 29, with State Bank of Pakistan (SBP) reserves increasing by over $1.3 billion in the last two weeks.
A rollover loan is a type of loan that is automatically renewed when not repaid within the agreed term, allowing the borrower to transfer the outstanding balance into a new agreement with similar or modified terms.
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