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Pakistan Says It Will Repay Matured Loan Deposits to UAE

Apr 04, 2026 16:53 UTC
^FRA, ^MXX, PAKAY
Medium term

The State Bank of Pakistan in Karachi, Pakistan, on Monday, Jan. 23, 2023.

  • Pakistan's repayment of loans to UAE could affect its credit standing and relations with the UAE.
  • The action may provide some short-term relief to Pakistan's foreign exchange reserves but does not address broader economic challenges.

The State Bank of Pakistan in Karachi, Pakistan, on Monday, Jan. 23, 2023. Pakistan increased its benchmark interest rate to 17%, the highest in more than 24 years, as the economy grapples with raging inflation, supply shortages, dwindling currency reserves and stalled foreign financing.

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