Pakistan gets payment relief as UAE extends deadline over $2-billion loan

3 weeks ago

Having averted a financial crisis just two years ago, Pakistan finds itself with little room for policy errors due to the impact of the Covid-19 pemic.

Topics
Pakistan  | UAE | loans

Imran Khan

Pakistan PM Imran Khan (Photo: Reuters)

The United Arab Emirates has rolled over the pending payment of a $2 billion loan by Pakistan, amid a three-day visit of Foreign Minister Shah Mahmood Qure­shi to the nation.

The payment relief, announced by Pakistan’s Foreign Ministry spokesman Zahid Hafeez Chaudhri in a Twitter post, comes days after the South Asian nation reached an agreement with the Monetary Fund on a resumption of a $6 billion bailout program.

Having averted a financial crisis just two years ago, Pakistan finds itself with little room for policy errors due to the impact of the Covid-19 pemic. The central bank expects the economy will exp by around 3 per cent in the year to June, after a rare contraction in the previous 12 months.

Qureshi started a three-day official visit to the UAE on Saturday, while his Indian counterpart Subrahmanyam Jaishankar was due to arrive in the nation on Sunday, government officials said.

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First Published: Wed, April 21 2021. 01:45 IST

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