🚨 GULF TENSION UPDATE
Reports are circulating about a $3B loan issue between the UAE and Pakistan, raising concerns across financial circles.
What’s happening:
The UAE had around $3 billion deposited with Pakistan. Instead of a sudden repayment demand, a large portion has been rolled over for short periods at about 6.5% interest while negotiations continue.
Why it matters:
• Pressure on Pakistan’s foreign reserves
• Uncertainty in currency and markets
• Possible impact on remittances
• Close watch from IMF and investors
Big picture:
This appears more like financial negotiation than political punishment.
Pakistan is seeking longer-term extensions, while lenders are giving short, cautious rollovers.
⏳ The next few weeks will be critical for reserves, the rupee, and regional financial ties.
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