Islamabad, April 3 Pakistan has decided to repay a $2 billion loan to the United Arab Emirates (UAE) at the UAE's request, a media report said on Friday.
The UAE had provided the funds to support the balance of payments, and the repayments were being made until recently.
The UAE recently requested the immediate return of the funds in the wake of the recent situation in the Middle East following the US-Israel war on Iran, sources said.
Citing sources, Geo News reported that the amount was kept with the State Bank of Pakistan (SBP) as a safe deposit.
Pakistan will return $2 billion to Abu Dhabi by the end of this month, it added.
Insiders said that Pakistan has been paying around 6 per cent interest on the amount. 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 until April 17.
For the current fiscal year, Pakistan needed a rollover of approximately $12 billion in external deposits, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion placed by the UAE.
Pakistan has more than $21 billion in reserves and will pay back to the UAE, but it may need external financing in the coming months.