The United Arab Emirates orders Pakistan to repay Rs 16,000 crore loan

Islamabad (Pakistan) – In the backdrop of the Iran-US war, the United Arab Emirates ordered Pakistan to repay the $2 billion (approximately Rs 16,000 crore) loan with interest by 17 April. The important thing is that the Emirates increased the interest rate on this loan from 3 % to 6.5 %, a big blow to financially bankrupt and starving Pakistan.

Double crisis in Pakistan

The time has come for Pakistan to beg the world with a bowl. Its foreign exchange reserves have run out. In this backdrop, it is impossible for Pakistan to raise $2 billion by 17 April. If Pakistan does not pay this money, then relations with the United Arab Emirates are likely to deteriorate permanently. Pakistan is currently stuck in a double dilemma of whether to support Iran or pay the Emirates.
Why did the Emirates refuse Pakistan ?

Pakistan is currently trying to mediate to stop the war between Iran and the US-Israel. For this, Pakistan is talking to countries like Turkey and Egypt; however, the United Arab Emirates’ position is the opposite. It feels that the US should end Iran’s bullying forever. Since Pakistan is trying to save Iran, the Emirates started imposing an economic blockade on Pakistan.