The United Arab Emirates has agreed to extend the maturity of a $2 billion deposit placed with Pakistan for another two months, according to a report published on Friday. The decision comes as Islamabad prepares for key discussions with the International Monetary Fund (IMF).
The assurance followed recent contact between Deputy Prime Minister and Foreign Minister Ishaq Dar and senior UAE officials. A senior official confirmed that the extension will run until April 17, 2026. The rollover has been granted at an interest rate of 6.5 percent, though formal confirmation from the relevant authorities is still awaited and expected shortly.
The development precedes Pakistan’s third review under its $7 billion Extended Fund Facility (EFF) with the IMF and the anticipated release of a $1 billion tranche.
Responding to media queries, the Foreign Office spokesperson said he was unaware of the specific statements made by Finance Ministry officials before the parliamentary Standing Committee on Finance. However, he confirmed that Dar was actively engaged on the matter and coordinating closely with UAE counterparts.
He emphasized that the duration of the rollover is determined by the depositor and indicated that the extension was secured through diplomatic engagement. The spokesperson added that the continuation of the rollover ensured the situation remained manageable. He also referred to the finance minister’s earlier remarks that Pakistan currently faces no external financing shortfall, including in the context of its IMF programme.
Previously, the UAE had extended the same $2 billion deposit for only one month, with $1 billion maturing in mid-February and the remaining $1 billion days later. Islamabad had initially sought a two-year extension and later submitted a revised request. Officials have conveyed that Pakistan will seek a longer-term arrangement after completing the IMF review.
Earlier in January, the UAE also granted a one-month rollover when the deposit matured. A separate $1 billion tranche is scheduled to mature in July 2026.
In December, Pakistan’s Ministry of Finance had prepared formal documentation requesting a one-year rollover of the full $3 billion deposit held by the UAE. While the government had expected early confirmation, as in previous cases, the UAE initially agreed only to a short-term extension.
During a recent parliamentary session, Finance Ministry officials were unable to provide a firm assurance regarding the full $3 billion rollover, stating that discussions were being handled through diplomatic channels.
According to official sources, the Abu Dhabi Fund for Development has placed $3 billion with the State Bank of Pakistan in three tranches. Two $1 billion tranches that matured in January were extended for one month, while the third is due in July and will be addressed closer to its maturity date.
Separately, Saudi Arabia extended the maturity of its own $3 billion deposit with Pakistan’s central bank by one year in December, under a 2021 arrangement.
For the current fiscal year, Pakistan is seeking the rollover of roughly $12 billion in external deposits, including around $9 billion from Saudi Arabia and China, $5 billion and $4 billion respectively — in addition to the $3 billion provided by the UAE.