ISLAMABAD: The United Arab Emirates (UAE) deferred on Tuesday $2 billion debt payment that Pakistan was bound to repay in March.

The Finance Ministry officials said that Pakistan was bound to return $2 billion loan to the UAE in March, adding that the UAE authorities agreed to defer the payment of the loan at the request of Pakistan.

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“The deferral of the debt will help reduce external financial pressure,” said the finance ministry officials.

It is to be noted here that the UAE had granted a loan of $2 billion to Pakistan in 2019 to help the country overcome economic difficulties.