South Asia and Beyond

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.

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.