Pakistan, Jan. 17 -- Pakistan has formally asked the United Arab Emirates to extend repayment of $2.5 billion in loans for two years. The request includes lowering interest rates by nearly half, covering a $450 million facility dating back 30 years. Prime Minister Shehbaz Sharif confirmed the rollover agreement during the UAE president's recent visit, though the exact duration is still unclear.

The bulk of the debt, $2.45 billion, is maturing imminently, with $1 billion due this week and another $1 billion next week. Pakistan is negotiating to reduce the interest rate from 6.5 percent to about 3 percent. Officials cited improved credit ratings and lower global borrowing costs as justification for the request.

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