Pakistan has secured an in-principle agreement from the United Arab Emirates to roll over a $2 billion deposit for two months, providing short-term financial relief ahead of key talks with the International Monetary Fund.
The extension, granted at an interest rate of 6.5%, will run until April 17, 2026, according to a senior government official familiar with the matter. The previous one-month rollover was set to expire within days. Formal approval from relevant UAE authorities is still awaited but is expected shortly, the official said.
The development comes as Pakistan prepares for the IMF’s third review under its $7 billion Extended Fund Facility program and the potential release of a $1 billion tranche. Securing rollover commitments from bilateral partners is considered critical for maintaining external financing stability during the review process.
Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior UAE officials this week to secure the extension, according to Pakistan’s Foreign Office. A spokesperson said the rollover was assured and that the tenure remained the prerogative of the depositor, adding that the matter was “under control.”
The UAE, through the Abu Dhabi Fund for Development, has placed $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 a third $1 billion tranche is due to mature in July 2026.
Islamabad had sought a longer extension of up to two years but initially secured only short-term renewals. Officials say Pakistan will again approach the UAE for a longer rollover after the IMF review is completed.
For the current fiscal year, Pakistan is seeking rollover of roughly $12 billion in external deposits, including about $9 billion from Saudi Arabia and China, in addition to the UAE funds. Saudi Arabia agreed in December to extend the maturity of its $3 billion deposit with Pakistan’s central bank by one year.