Good news could be on the horizon for Pakistan’s struggling economy, as the country gears up to receive major financial backing from the United Arab Emirates. Pakistan is likely to secure a $3 billion loan rollover from the UAE by mid-January, giving much-needed relief to its foreign exchange reserves and easing ongoing economic pressure.
Sources reveal that Pakistan’s Ministry of Finance has already wrapped up all official preparations to make this loan rollover happen. The plan is now in its final stages, and government insiders are optimistic that everything will be settled right on schedule.
To get things moving, Prime Minister Shehbaz Sharif is expected to send a formal request for the loan rollover directly to UAE President Sheikh Mohammed bin Zayed bin Nahyan. In his letter, he will emphasize Pakistan’s dedication to its financial commitments and underscore the strong economic and diplomatic partnership between the two nations.
Unlike a brand-new loan, the $3 billion deal will simply extend the terms of an existing loan, giving Pakistan extra time to manage repayments. This move is expected to provide breathing room for the government at a critical moment, taking the pressure off its foreign exchange reserves.
Economists believe this extension will help Pakistan cover its short-term external financing needs and support ongoing economic reforms. It could also bring stability to the currency market and boost investor confidence.
The UAE has long stood by Pakistan during tough economic times, and this latest financial gesture is set to deepen the close ties between the two countries. If the deal is finalized as expected, it will offer timely support for Pakistan’s economy when it’s needed most.
