UAE Considers Extending $1 Billion Loan to Pakistan

UAE, 10 June, 2024 : Pakistan is seeking a rollover of its $1 billion loan from the UAE, according to local media reports. Prime Minister Shehbaz Sharif is expected to request the extension in a letter to President Sheikh Mohammed bin Zayed Al Nahyan, as reported by ARY News.

The $350 billion South Asian economy has faced a severe payment crisis recently. In January, the UAE agreed to lend $1 billion to Pakistan and extend an existing $2 billion loan following significant flood damages.

Moody’s Ratings indicated that emerging markets like Pakistan might use foreign exchange reserves to repay maturing debt, keeping near-term default risks high. Pakistan is also negotiating with the IMF for a new loan program after its $3 billion standby arrangement concluded in April 2024. Reuters reported that a staff-level agreement might be secured by early July.

Source : www.zawya.com