Pakistan has decided to clear its entire USD 3.5 billion debt to the United Arab Emirates (UAE) by the end of April after the Gulf state recently asked for the immediate return of the funds, news agency PTI reported. This was confirmed by a senior Pakistani cabinet minister.

According to the report, the UAE has sought immediate repayment of the loans it had granted to Pakistan in the wake of the hostile situation in the Gulf country due to US-Israel-Iran war.

The repayment schedule has been finalised: USD 450 million will be returned on April 11, followed by USD 2 billion on April 17 and another USD 1 billion on April 23. Officials said arrangements are being made, with a likelihood that the funds could be drawn from the central bank's USD 16.4 billion foreign exchange reserves.

Of the total amount, USD 450 million traces back to a one-year loan taken in 1996-97, which is now set to be cleared after nearly three decades.