ISLAMABAD: Pakistan has made a principal decision to return a $2 billion loan to the United Arab Emirates (UAE), with the repayment scheduled for later this month.
According to sources from the Ministry of Finance, the funds have been held in Pakistan’s account as a safe deposit, and interest at a rate of 6% has been applied on this amount. Previously, the UAE had allowed the loan to roll over annually. However, in December 2025, it was rolled over for one month and then for two months.
Given the current international financial situation, the UAE requested the immediate return of the funds, prompting Pakistan’s decision to settle the debt promptly.
This move reflects ongoing financial coordination between the two nations amid a dynamic global economic landscape.
