DUBAI: The United Arab Emirates (UAE) is expected to rollover the two billion dollar loan to Pakistan to the next year, officials privy to the development said here on Tuesday.
They said the UAE had provided the loan late last year to help Pakistan avoid a default and get a loan from the International Monetary Fund. The loan of the two billion dollars was to return on January 23 this year
.However, due to unfavorable financial condition, the government of Pakistan requested the UAE to roll over the loan for the next year. Officials from both the sides were holding talks and the government of the UAE was expected to delay the payment to the next year.
Now Pakistan would have to pay the interest on the loan at the rate of 3 per cent on one billion dollars and 6.5 percent on the remaining one billion dollars. As the caretakers will go home, the next elected government would pay the loan with an increased interest rate.
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