Home UAE Gives Pak More Time To Repay $2 Bn Loan

UAE Gives Pak More Time To Repay $2 Bn Loan

Pakistan’s foreign ministry has announced the UAE’s decision to extend the term of a $2 billion deposit by the Abu Dhabi Fund for Development, conveyed during Foreign Minister Shah Mahmood Qureshi’s just concluded visit. The extension is for repayment of the interest-free loan given in January 2019. Pakistan was supposed to repay it by April 19, 2021. It’s not clear how much more time Pakistan has got to repay.

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In 2020, Pakistan reportedly paid back part of a $2 billion loan from Saudi Arabia with the help of China. Pakistan’s foreign minister also raised the issue of visa restrictions imposed by the UAE, a statement added. UAE government statements did not mention the issue of visas. There are an estimated 1.6 million Pakistanis in the UAE, who are a key source of foreign remittances. Pakistani media also reported last month that the World Bank had signed agreements to provide a loan of $1.336 billion, just days after the International Monetary Fund agreed to release a tranche of a $500 million loan.