Pakistan has decided to repay the UAE's $2 billion loan by the end of this month, sources told Geo News on Friday.
The sources said Islamabad will return $2 billion to Abu Dhabi by the end of this month. The amount was kept with the State Bank of Pakistan (SBP) as a safe deposit.
Pakistan has been paying around 6% interest on the amount, they said. In the past, the UAE used to roll over the deposit on a yearly basis. However, in December 2025, the amount was extended first for one month and then for two months.
Sources added that the UAE recently asked for the immediate return of the funds in the wake of the recent situation in the Middle East following the US-Israel war on Iran.
Earlier in February, the UAE had agreed in principle to grant a rollover of a $2 billion deposit for a short-term period of just two months, The News learnt.
This assurance was given to Pakistan when Deputy Prime Minister Ishaq Dar contacted the UAE high-ups this week. A top official confirmed that the UAE had agreed to the short-term rollover until April 17, 2026.
Earlier, the UAE had rolled over $2 billion for just one month, with $1 billion maturing on February 16 and the remaining $1 billion on February 22.
The Pakistani government had requested the UAE to roll over the deposit for two years and subsequently submitted a fresh request for extension of the facility.
In January, the UAE had rolled over $2 billion for one month after the amount matured. A third tranche of $1bn is due to mature in July 2026.
According to officials, the Abu Dhabi Fund for Development has placed $3 billion with the State Bank of Pakistan in three separate tranches. Two tranches of $1 billion each matured on January 17 and January 23 and were rolled over for one month, while the third tranche of $1 billion is due to mature in July and will be taken up for rollover closer to its maturity.
For the current fiscal year, Pakistan is seeking rollover of approximately $12 billion in external deposits, including around $9 billion from Saudi Arabia and China — $5 billion from Saudi Arabia and $4 billion from China — in addition to the $3 billion placed by the UAE.
