Pakistan says in talks with UAE over $2 billion loan rollover

Pakistan Finance Minister Muhammad Aurangzeb speaks during a Reuters interview at the 2025 annual IMF/World Bank Spring Meetings in Washington, DC, US, April 25, 2025. (Reuters/File)
Short Url
Updated 25 February 2026
Follow

Pakistan says in talks with UAE over $2 billion loan rollover

  • UAE’s $2 billion loan matured in January this year, with no announcement on its status from Pakistan’s central bank
  • Pakistan’s Finance Minister Muhammad Aurangzeb assures reporters there is “absolutely no issue” with UAE loan rollover

ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Wednesday that Islamabad was in talks with the UAE on rolling over its $2 billion loan, clarifying that there was no cause for concern over the matter. 

The UAE has rolled over deposits worth $2 billion with Pakistan’s central bank since 2023, helping the South Asian country shore up its foreign exchange reserves.

The loan first matured in January this year and again in February. However, Pakistan’s central bank has not made any announcement about its status. 

“We are directly in communication with them [UAE],” Aurangzeb told reporters in response to a question about whether the Gulf country had officially rolled over the loan or not. 

“There is absolutely no issue with the rollover. I want to be very categorical.”

Loan rollovers from China, Saudi Arabia and the UAE are crucial for Pakistan as its fragile economy has struggled for decades with boom-and-bust cycles. 

The UAE is Pakistan’s third-largest trading partner after China and the US, and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE foreign ministry.

It is also home to more than a million Pakistani expatriates, making the country a major source of remittances for Pakistan. 


Pakistan denies role in Afghan regime change, says military operation will continue

Updated 6 sec ago
Follow

Pakistan denies role in Afghan regime change, says military operation will continue

  • Pakistan, Afghanistan have been embroiled in military conflict since last week after Afghan forces launched retaliatory attacks against Islamabad
  • Pakistan not targeting indiscriminate sites but specific infrastructure, installations being used to support “terrorist groups,” says security official

ISLAMABAD: Islamabad is not seeking a regime change in Afghanistan, state media reported this week quoting a senior security official, who vowed that Pakistan’s military operation against Afghan forces will continue until the Taliban government stops facilitating militants. 

The statement comes in response to the ongoing military conflict between Afghanistan and Pakistan, which began after Afghan forces on Thursday launched attacks in retaliation for Pakistani airstrikes earlier this month.

Since then, Pakistan has carried out military operations along the border, with Information Minister Attaullah Tarar claiming the killing of 435 Afghan forces and the capture of 31 Afghan positions. Afghanistan, on the other hand, has also claimed capturing several Pakistani military posts along the border and carrying out strikes targeting military bases in Pakistan. Arab News could not independently verify these claims.

“He clarified that Pakistan has nothing to do with any change of government in Afghanistan, calling it an internal choice of the Afghan people,” state broadcaster Radio Pakistan reported on Monday, citing a senior security official who spoke on condition of anonymity.

Islamabad accuses the Afghan Taliban government of sheltering militants, particularly the Tehreek-e-Taliban Pakistan (TTP) in Afghanistan and facilitating their attacks against Pakistan.

Afghanistan has denied these charges and urged Pakistan to focus on resolving its security challenges internally without blaming Kabul.

The official said the Afghan Taliban will have to either pick sides between Pakistan or the “terrorist groups” operating from their soil.

“A senior Pakistani security official has said that ‘Operation Ghazab Lil-Haq’ will continue until the Afghan Taliban government provides verifiable assurances to Pakistan that it will stop facilitating Fitna Al-Khwarij and Fitna Al-Hindustan,” Radio Pakistan reported.

Pakistan’s government and military use the terms “Fitna Al-Khwarij” for the TTP and “Fitna Al-Hindustan” for separatist militant outfits that operate mostly in southwestern Balochistan province. Islamabad accuses its chief rival India of supporting these militant groups, charges that New Delhi has always denied. 

The security official rejected Afghanistan’s claims Pakistan has killed numerous civilians in its operations. 

“He stressed that Pakistan is not targeting indiscriminate sites but only specific infrastructure and installations being used to support terrorist groups,” the state broadcaster said. 

The latest cross-border fighting ended a ceasefire brokered by Qatar and Turkiye in October. The two sides failed to reach a permanent agreement during talks in Istanbul.

Despite the ongoing tensions, Pakistan’s President Asif Ali Zardari on Monday reiterated Islamabad’s calls for talks with Afghanistan. 

“We have never walked away from dialogue,” he said.