Pakistan has obtained an in-principle agreement from the United Arab Emirates to roll over a $2 billion deposit for two months, offering temporary financial support ahead of crucial discussions with the International Monetary Fund (IMF).
According to a senior government official, the rollover will carry an interest rate of 6.5 percent and extend until April 17, 2026. The previous one-month extension was nearing expiry. While formal approval from the relevant UAE authorities is still pending, it is expected to be finalized soon.
The move comes as Pakistan prepares for the IMF’s third review under its $7 billion Extended Fund Facility (EFF) program, which could unlock a $1 billion tranche. Securing rollover commitments from friendly countries is considered essential to ensure external financing stability during the review process.
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Deputy Prime Minister and Foreign Minister Ishaq Dar reportedly engaged with senior UAE officials to secure the extension. Pakistan’s Foreign Office confirmed that the rollover had been assured, noting that the tenure of the deposit remains at the discretion of the UAE authorities and that the situation is under control.
The UAE, through the Abu Dhabi Fund for Development, has placed a total of $3 billion with the State Bank of Pakistan in three separate tranches. Two $1 billion deposits that matured in January were rolled over for one month, while the third $1 billion tranche is scheduled to mature in July 2026.
Although Pakistan initially sought a longer extension of up to two years, it secured only short-term renewals for now. Officials indicated that Islamabad will request a longer rollover once the IMF review is completed.
For the current fiscal year, Pakistan is seeking rollovers of approximately $12 billion in external deposits, including around $9 billion from Saudi Arabia and China, in addition to the UAE funds. Saudi Arabia had agreed in December to extend the maturity of its $3 billion deposit with Pakistan’s central bank by one year.
