The Pakistan government is set to request a rollover of a $3 billion loan from the United Arab Emirates (UAE), according to official sources.
Prime Minister Shehbaz Sharif is expected to write to UAE President Sheikh Mohamed bin Zayed Al Nahyan, seeking the extension of three loan tranches totaling $3 billion before their respective maturity dates.
Sources in the Ministry of Finance said the necessary groundwork has been completed, and the prime minister will formally approach UAE authorities soon for the rollover. The UAE has deposited a total of $3 billion with the State Bank of Pakistan, which is being utilized to support the country’s balance of payments.
Officials noted that the first $1 billion tranche is due to mature on January 17, followed by another $1 billion on January 23, while the remaining $1 billion is scheduled to mature in July this year.
The government intends to seek a rollover of all three installments. Currently, Pakistan is paying an interest rate ranging between 3 and 6.5 percent on the UAE’s total $3 billion deposit in the central bank, with the possibility that the rate could rise above 6.5 percent.
