Due to tension in the Middle East, UAE has immediately demanded the immediate return of a loan of $ 3.5 billion from Pakistan. Pakistan has confirmed to pay the entire amount in installments by the end of April. This payment will be made from the country’s foreign exchange reserves.
New Delhi: Amidst the war-like situation in the Middle East, the United Arab Emirates (UAE) has given a big blow to Pakistan. UAE has asked Pakistan to immediately return its $3.5 billion loan.
According to the report of news agency PTI, Pakistan has decided to pay the entire amount by the end of April. A cabinet minister of Pakistan has also confirmed this. The report said that in view of the ‘atmosphere of hostility’ created in the Gulf country after the tension between America-Israel-Iran, UAE has asked Pakistan to immediately repay the loan given. The minister has confirmed that the entire amount will be refunded.
However, ‘The Express Tribune’ has quoted senior officials as saying that talks are also going on to convert a part of the outstanding amount into investment.
According to reports, Pakistan will pay installments of $450 million on April 11, $2 billion on April 17 and $1 billion on April 23. Officials say that arrangements are being made for this. This money can be given from the Central Bank’s foreign exchange reserves of $16.4 billion.
Of the total amount, $450 million is a one-year loan taken in 1996-97. Now after almost three decades it is being repaid. Apart from this, there were two more loans of $1 billion each, whose maturity was ending on January 16 and 22. These were rolled over for just one month at an interest rate of 6.5%.