Islamabad: United Arab Emirates (UAE) has agreed to a short-term rollover of $2 billion in deposits for Pakistan for a period of two months, according to The News on Friday. The development comes as Islamabad prepares for upcoming International Monetary Fund (IMF) review talks.
The assurance was conveyed after Deputy Prime Minister and Finance Minister Ishaq Dar contacted UAE officials earlier this week. Sources confirmed that the rollover will remain in place until April 17, 2026, allowing Pakistan additional time ahead of the IMF’s third review and the release of the $1 billion fourth tranche under the $7 billion Extended Fund Facility (EFF).
Key Details of the Rollover
Officials stated that the short-term rollover will carry an interest rate of 6.5%, with formal approval expected imminently. The Foreign Office spokesperson clarified that the matter is under active coordination by Deputy Premier Dar, emphasizing that the tenure of the rollover is determined by the depositor and remains under control.
Earlier, the UAE had rolled over $2 billion for one month, with $1 billion maturing on February 16 and the remaining $1 billion on February 22. The Pakistani government had requested a longer-term rollover of two years but initially received only a short-term extension.
Following the IMF review, Islamabad plans to approach UAE authorities again to negotiate a longer-term rollover of the deposits.
UAE, Saudi Arabia, and China Deposits
The Abu Dhabi Fund for Development has placed $3 billion with the State Bank of Pakistan (SBP) in three tranches. Two tranches of $1 billion each were rolled over in January for one month, while the third tranche will mature in July 2026.
Earlier, Saudi Arabia agreed to extend its $3 billion deposit with the SBP by another year. Additionally, Pakistan is seeking rollover of roughly $12 billion in external deposits for the current fiscal year, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.
The Finance Ministry has confirmed that bilateral arrangements are on track and that Pakistan has provided a clear external financing plan to the IMF. Officials stated that any updates regarding the rollover of deposits will be communicated promptly.