Pakan to repay USD 2 billion loan to UAE on its demand: Report | World News
Pakan to repay $3.5bn UAE debt in full, ends rollover practice. (File Photo)
Pakan has decided to repay $3.5 billion owed to the United Arab Emirates within this month, marking a shift away from long-standing rollover arrangements, according to a report Dawn.
Citing officials familiar with the matter, Dawn reported that the move aims to address uncertainty after Abu Dhabi recently shifted the deposits to short-term, month-to-month extensions.
A senior official was quoted as saying the decision is meant to “remove doubts around the future of the deposits and avoid repeated short-term extensions”.
For years, Pakan relied on rollovers of deposits from Gulf partners, but the latest one-month extension raised concerns in Islamabad about financial stability. Officials said repaying the full amount would reduce the risk of any sudden refusal to extend the loan.
The report said the government also wants to improve its position with international lenders, including the IMF, clearing outstanding liabilities.Story continues below this ad
Part of the repayment includes a $450 million loan dating back to 1996-97. Though originally taken for one year, it had been rolled over multiple times. Officials told Dawn this portion could be repaid as early as next week.
An official added that discussions are under way to “shift from loans to investment”, with the possibility of some funds returning to Pakan in the form of investment in energy and infrastructure.
