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UAE Extends $2 Billion Loan to Pakistan Amid Debt Crisis

2/3/2026

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Summary

Story summary

The United Arab Emirates (UAE) rolled over Pakistan's $2 billion loan for one month, providing short-term relief.
The loan was due in January, and Pakistan has requested a longer extension as discussions continue.
The UAE has also deposited $3 billion with Pakistan's central bank.
Prime Minister Shehbaz Sharif said foreign loans affect national dignity as Pakistan seeks export-led stabilization amid debt costs.

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Story summary

The United Arab Emirates (UAE) rolled over Pakistan's $2 billion loan for one month, providing short-term relief.
The loan was due in January, and Pakistan has requested a longer extension as discussions continue.
The UAE has also deposited $3 billion with Pakistan's central bank.
Prime Minister Shehbaz Sharif said foreign loans affect national dignity as Pakistan seeks export-led stabilization amid debt costs.