Extension of $2 billion loan deadline from UAE to Pakistan

On January 2019, $2 billion loan has been given to Pakistan by the Abu Dhabi Fund for Development (ADFD).Recently UAE has been decided to roll over the repayment of this loan given to Pakistan. The aim for the extension of this loan is to boost liquidity and help overcome financial crisis faced by the South Asian country.

The news was announced on Tuesday following a meeting between Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation, and Shah Mahmood Qureshi, Pakistan’s Minister of Foreign Affairs.

A total of $3 billion  was deposited by the UAE with the State Bank of Pakistan in January 2019 to help fill current account deficit gap and improve foreign exchange reserves to support Pakistan’s currency.

There were fears among the Pakistani officers that UAE might refuse the extension of this loan. However, today the foreign office has announced that Pakistan has received extension for the repayment of UAE loan.

The two sides discussed the ongoing cooperation between the two countries for the eradication of the Covid-19 pandemic, and ways of accelerating global interaction to address the impact of the disease and ensure the delivery of vaccines to all countries of the world.

Qureshi also appreciated the UAE’s leadership for taking special interest of Pakistani citizens during the Covid-19 epidemic..

“Pakistan will take part in the Dubai Expo 2020 in October this year and showcase its history, geographical importance, civilization ,culture and vast business and tourism opportunities offered by the country,” Qureshi said during the meeting.

The two ministers discussed important regional and global issues of mutual interest, including the Afghan peace process and bilateral cooperation in international forums.

The Pakistani foreign minister’s second visit to the UAE in the last four months, reflecting growing bilateral relations and high-level contacts between the two countries. He also invited UAE foreign minister to visit Pakistan, which he kindly accepted.