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🇦🇪❌🇵🇰 - Pakistan says it will repay $2 billion of matured loan deposits to the UAE.
Pakistan was granted a two-month extension to negotiate the rollover of the $2 billion loan which initially matured back in February 2026. The negotiation has since broken down and UAE is now demanding that Pakistan return the money immediately.
Pakistan is grappling with an acute cash crunch. Its USD reserve is at $16.4 billion and dwindling, with another $1.3 billion bond payment due in April.
This fiscal pressure raises serious questions about Pakistan's aptness to mediate in the Iran war. UAE is among the primary targets of Iranian drone and missile attacks.