Govt decides to repay USD2bn to UAE
- Continuously monitoring Pakistan’s external flows, says Ministry of Finance
ISLAMABAD: The government has decided to repay USD2 billion to the United Arab Emirates (UAE) by the end of the current month, reliable sources told Business Recorder.
The amount, parked with the State Bank of Pakistan as a safe deposit, was carrying an interest rate of around 6 percent, making it a relatively expensive for the country, officials said.
According to senior officials, the UAE had previously been rolling over the deposit on an annual basis.
READ MORE: UAE agrees to rollover $2bn loan for two months: report
However, the rollover terms were shortened in recent months, with the facility extended for one month in December 2025 and subsequently for monthly basis.
The Ministry of Finance in response to ‘speculation and commentary in some sections of media’ regarding the government of Pakistan’s external flows, said that it was continuously monitoring Pakistan’s external flows in order to ensure stable foreign exchange.
Copyright Business Recorder, 2026
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