Pakistan to Repay $1.5 Billion Debt to UAE by April 23 Amid IMF Support
Pak to repay USD 1.5 bn outstanding UAE debt by April 23
News 18
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Pakistan's central bank aims to repay $1.5 billion of its $3.5 billion loan to the United Arab Emirates by April 23, following a recent $2 billion repayment. This comes as Pakistan anticipates $1.2 billion from the International Monetary Fund, crucial for stabilizing its foreign reserves.
- 01Pakistan will repay $1.5 billion of its $3.5 billion debt to the UAE by April 23.
- 02The State Bank of Pakistan recently repaid $2 billion to the UAE.
- 03Pakistan expects a $1.2 billion disbursement from the IMF to support its economy.
- 04The UAE requested the return of funds due to regional tensions.
- 05Pakistan's foreign exchange reserves are currently at $16.4 billion.
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Pakistan's central bank, the State Bank of Pakistan (SBP), announced its intention to repay $1.5 billion of a $3.5 billion loan to the United Arab Emirates (UAE) by April 23. This follows a recent repayment of $2 billion to the UAE, which was made possible after Saudi Arabia deposited $2 billion with the SBP as part of a $3 billion aid package. Finance Minister Muhammad Aurangzeb indicated that Pakistan anticipates receiving $1.2 billion from the International Monetary Fund (IMF) to help stabilize its economy, with the IMF Executive Board set to review the situation in mid-May. The UAE had requested the immediate return of funds due to the geopolitical situation in West Asia. As of March 27, Pakistan's foreign exchange reserves were reported to be $16.4 billion, sufficient to cover nearly three months of imports. The repayment comes amid increasing pressure on Pakistan's external financial buffers.
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The repayment of the UAE loan is crucial for stabilizing Pakistan's foreign exchange reserves, which are essential for covering import costs and maintaining economic stability.
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