- By Aditya Jha
- Sat, 04 Apr 2026 06:02 PM (IST)
- Source:JND
West Asia Crisis: Amid the ongoing war between Iran and the joint forces of Israel and the US, Pakistan has reportedly agreed to repay a USD 2 billion loan to the United Arab Emirates (UAE) by the end of April. The decision was taken after the UAE, amid the ongoing crisis, recently asked for the immediate return of the funds, reported PTI, citing people familiar with the matter. The UAE had provided a loan to support Islamabad's balance of payment; however, it sought immediate return due to the crisis in the Middle East.
"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," reported news agency PTI, citing sources. While confirming the news, the Pakistani officials asserted that the decision to repay the full amount was taken to maintain the country's dignity. "The amount will be returned as soon as possible," the official was quoted as saying by The Dawn.
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"National dignity could not be compromised for financial considerations," he added. However, a parallel discussion was also ongoing among the top officials to cover part of the outstanding loan into investment, senior officials were quoted as saying by The Express Tribune.
As per the reports, Islamabad has decided to return USD 450 million on April 11. While it will repay USD 2 billion on April 17, another USD 1 billion will be sent to the UAE on April 23. The officials also asserted that the large funds are likely to be drawn from the central bank's USD 16.4 billion foreign exchange reserves.
Earlier, while addressing the struggling economy, Pakistani Prime Minister Shehbaz Sharif asserted that reserve levels of the country have improved. However, the improvement has been largely due to USD 12 billion in deposits from friendly countries, including the UAE and China.