Pakistan to repay USD 2 billion loan to UAE on its demand: Report

Islamabad: Pakistan has decided to repay a loan of US$ 2 billion to the United Arab Emirates (UAE) upon its request, according to a media report on Friday.

The UAE had provided funds to support the balance of payments and was being made available until recently.

Sources said that the UAE recently requested the immediate return of the funds following the latest situation in the Middle East following the US-Israeli war against Iran.

Citing sources, Geo News reported that this amount was kept in escrow with the State Bank of Pakistan (SBP).

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He added that Pakistan will return $2 billion to Abu Dhabi by the end of this month.
Insiders said Pakistan paid around 6 percent interest on this amount. In the past, UAE rolled over deposits on an annual basis. However, in December 2025, this amount was extended first for one month and then for two months until April 17. For the current financial year, Pakistan needed replenishment of external deposits of approximately US$ 12 billion, including US$ 5 billion from Saudi Arabia, US$ 4 billion from China and US$ 3 billion from the UAE.

Pakistan has reserves of more than $21 billion and will repay its debt to the UAE but may need external financing in the coming months.