UAE Rolls Over Pakistan’s $2 Billion Loan for One Month

According to sources, the UAE has rolled over Pakistan’s $2 billion loan for one month. The loan originally matured in January, but a temporary extension was granted until February to provide breathing room for the country’s finances.

Pakistan currently pays an estimated $130 million in annual interest on this debt and is reportedly seeking a more favorable long-term deal to reduce the persistent pressure on its foreign exchange reserves. As any gaps created by loan repayments must be filled by alternative funding, the UAE is also expected to lend an additional $1 billion at an interest rate of 6.5%.