Islamabad (TDI): The United Arab Emirates has agreed to roll over a $2 billion deposit placed with Pakistan for another two months, offering Islamabad temporary financial breathing space as it heads into crucial review talks with the International Monetary Fund (IMF).
According to senior officials, the short-term extension will run until April 17, 2026, and carries an interest rate of 6.5 percent, The News reported.
The assurance reportedly came after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior UAE authorities earlier this week. Formal approval is expected shortly.
The rollover comes at a sensitive time, as Pakistan prepares for the third review of its $7 billion Extended Fund Facility (EFF) with the IMF and seeks the release of the $1 billion fourth tranche. Securing continued support from friendly countries is considered vital to maintaining external stability ahead of the review.
Read More: UAE Rolls Over $2B Loan to Pakistan
Foreign Office spokesperson Tahir Andrabi confirmed that Dar had been actively engaged with Emirati counterparts and described his role as “very positive” in coordinating the matter. He added that the duration of any rollover remains the prerogative of the depositor but stressed that the extension itself was assured and that the issue remained under control.
Previously, the UAE had rolled over the same $2 billion deposit for only one month, with $1 billion maturing on February 16 and the remaining $1 billion on February 22. Pakistan had initially sought a longer-term extension, up to two years, and plans to renew that request after the IMF review is completed.
The $2 billion is part of a broader $3 billion deposit placed with the State Bank of Pakistan by the Abu Dhabi Fund for Development in three separate tranches. Two $1 billion tranches that matured in January were rolled over for one month, while the third tranche is due to mature in July 2026 and will be addressed closer to that date.
Finance ministry officials had earlier indicated that Pakistan had shared a clear external financing plan with the IMF and that bilateral arrangements were progressing. The finance minister also assured lawmakers that there was no immediate external financing gap.
Read More: Riyadh Rolls Over $3bn Deposit, Boosting Pakistan’s Reserves
For the current fiscal year, Pakistan is seeking rollover of around $12 billion in external deposits. This includes approximately $9 billion from Saudi Arabia and China, $5 billion from Riyadh and $4 billion from Beijing, in addition to the $3 billion from the UAE. In December, Saudi Arabia extended the maturity of its own $3 billion deposit with Pakistan’s central bank by one year.
The latest UAE decision, even if short-term, helps Islamabad avoid pressure on foreign exchange reserves and strengthens its position ahead of discussions with the IMF. However, officials acknowledge that securing longer-term extensions will remain a key priority in the months ahead.
