Pakistan has decided to repay a $2 billion loan to the United Arab Emirates (UAE) by the end of April 2023, following a demand from the UAE amid rising tensions in the Middle East, particularly related to the US-Israel conflict with Iran. The loan was initially provided to support Pakistan's balance of payments and was kept as a deposit with the State Bank of Pakistan (SBP). Reports indicate that Pakistan has been paying approximately 6% interest on this amount. In the past, the UAE had rolled over the loan annually, but recent geopolitical developments prompted the request for immediate repayment. Despite having over $21 billion in reserves, Pakistan may face challenges in securing the necessary external financing in the coming months, as it requires around $12 billion in rollover deposits for the current fiscal year, including funds from Saudi Arabia and China.