ISLAMABAD: United Arab Emirates (UAE) has confirmed the rollover of $2 billion for one year to Pakistan, maintained by the State Bank of Pakistan, while sharing the news on its X (formerly Twitter) handle here on Wednesday.
UAE has confirmed rollover of its two deposits of US$1.0 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024.#SBP
— SBP (@StateBank_Pak) January 17, 2024
Earlier, the loan had to be mature in January this year; however, now Pakistan has the space of one year further. In total, the UAE placed $3 billion as a safe deposit with the State Bank of Pakistan to support Pakistan’s ailing economy.
The development came amid a request by Pakistan to UAE, whereas Caretaker Prime Minister Anwaar-ul-Haq Kakar wrote a letter to the President of UAE, Sheikh Mohammed bin Zayed al-Nahyan, requesting him a rollover of the relevant loan.
In January 2023, UAE also rolled over Pakistan’s loan of $2 billion at the request of the then-prime minister Shehbaz Sharif.
UAE’s Move to Support Pakistan’s Economy
UAE’s recent move happened when Pakistan also received the 2nd tranche of $700m of the Stand-By Agreement (SBA) from the IMF.
Both developments would have a significant impact on countering the current economic quagmire and would also help to strengthen and boost the foreign exchange reserves of the SBP.
