Finance Minister Muhammad Aurangzeb stated on Wednesday that Islamabad is currently engaged in discussions with the UAE regarding the rollover of its $2 billion loan, emphasising that there is no reason for concern regarding this issue.
Since 2023, the UAE has extended deposits amounting to $2 billion with Pakistan’s central bank, assisting the nation in strengthening its foreign exchange reserves.
The loan initially matured in January of this year and again in February.
Nevertheless, Pakistan’s central bank has yet to provide any updates regarding its status.
In response to an inquiry about whether the Gulf nation had officially rolled over the loan, Pakistan FM stated, “We are in direct communication with the UAE.”
“There is absolutely no problem with the rollover. I wish to be very clear on this matter.”, he added further.
Loan rollovers from China, Saudi Arabia, and the UAE are vital for Pakistan, as its vulnerable economy has faced challenges for decades due to cycles of economic booms and busts.
According to the UAE foreign ministry, the UAE ranks as Pakistan’s third-largest trading partner, following China and the US, and serves as a significant source of foreign investment, which has exceeded $10 billion over the past two decades.
New updates for UAE visa applicants in Pakistan
Earlier, Pakistan’s Ambassador to the UAE, Shafqat Ali Khan denied reports on Friday that claimed the Gulf nation had halted the issuance of 96 and 48-hour transit visas for Pakistani citizens.
In response to an inquiry, the ambassador stated that these reports were “not true,” thereby rejecting the assertions circulating on social media regarding a temporary suspension.
The UAE, along with its two airlines, Emirates and Etihad Airways, supports the short-term transit visas.
Last month, both nations reached an agreement to pursue a formal arrangement for ‘pre-immigration clearance.’
This proposed system would allow immigration procedures to be completed in Pakistan prior to departure, thereby minimising processing requirements upon arrival in the UAE.
