image sourced from original article at Pakistan has said it will repay the remaining $1.5 billion of a $3.5 billion loan to the United Arab Emirates by April 23, after already returning $2 billion. The repayment comes as the country awaits a $1.2 billion disbursement from the International Monetary Fund following recent talks in Washington. Officials expect the fund's executive board to review the agreement in mid-May.
The United Arab Emirates had provided the funds to help stabilise Pakistan's balance of payments, with the arrangement rolled over several times. Recent regional tensions reportedly prompted a request for repayment. Pakistan has been paying around 6 per cent interest on the deposits, which were most recently extended for short periods.
In parallel, Saudi Arabia has provided additional support by depositing $2 billion with Pakistan's central bank and extending the maturity of a separate $3 billion facility. Pakistan requires about $12 billion in external deposit rollovers this fiscal year from Saudi Arabia, China and the United Arab Emirates. Foreign exchange reserves stood at $16.4 billion at the end of March, covering nearly three months of imports.
