UAE Extends Pakistan’s Loan Repayment Period by Two More Months

Islamabad/Abu Dhabi – The United Arab Emirates has granted Pakistan a two-month extension on its loan repayment deadline, providing some relief to the country’s foreign exchange reserves, according to official sources.
Sources familiar with the matter revealed that the extension has been provided at an interest rate of 6.5 percent. This marks another instance of the UAE’s financial support to Pakistan during challenging economic times.
According to sources, formal approval from relevant authorities on both sides is expected to be issued soon, which will finalize the extended repayment terms. The extension will allow Pakistan additional time to manage its foreign debt obligations while working to stabilize its economy.
The UAE has been a key financial partner for Pakistan, providing crucial support through deposits and loans during periods of economic difficulty. These extensions help Pakistan manage its balance of payments and maintain adequate foreign currency reserves.
Financial experts view this extension as a positive development that will ease immediate pressure on Pakistan’s foreign exchange reserves and provide the government with more breathing space to arrange repayment funds.
The Ministry of Finance has not yet issued an official statement regarding the extension, but sources indicate that an announcement is expected following the completion of formal procedures.