ISLAMABAD: The United Arab Emirates (UAE) has agreed to roll over a $2 billion deposit for Pakistan for two months at an interest rate of 6.5%, providing temporary financial relief ahead of Islamabad’s upcoming review talks with the International Monetary Fund (IMF).
The extension, granted until April 17, 2026, comes as Pakistan prepares for the third review of its $7 billion Extended Fund Facility (EFF) programme and the anticipated release of a $1 billion fourth tranche.
The assurance was secured after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior UAE authorities earlier this week. A senior official confirmed that while the rollover has been agreed in principle, formal approval from the relevant authorities is still awaited and is expected soon.“The UAE has granted the rollover on a short-term basis at a rate of 6.5%,” official sources said, adding that the tenure of the deposit remains the prerogative of the depositor.
A spokesperson for Pakistan’s Foreign Office said the deputy prime minister was actively coordinating with UAE counterparts and playing a positive role in consultations. He added that since the rollover continues, the matter remains under control and is not linked to any specific conditions.
The development follows an earlier one-month rollover by the UAE in January, when two $1 billion tranches matured on January 17 and January 23. Those were extended for one month. Another $1 billion tranche is due to mature in July 2026.
According to officials, the $3 billion deposit was placed with the State Bank of Pakistan by the Abu Dhabi Fund for Development in three separate tranches.
The government had initially requested a two-year rollover and later sought a one-year extension for the full $3 billion. However, the UAE agreed only to short-term extensions. Islamabad is expected to approach UAE authorities again for a longer-term rollover following the IMF review.
Earlier, the Ministry of Finance informed a parliamentary committee that discussions with the UAE were ongoing. The finance minister said Pakistan had provided the IMF with a clear external financing plan and that bilateral arrangements were progressing, assuring lawmakers that any change in the situation would be communicated.
In December, Saudi Arabia extended the maturity of its $3 billion deposit with Pakistan’s central bank by another year under a 2021 agreement.
For the current fiscal year, Pakistan is seeking rollover of approximately $12 billion in external deposits. This includes around $9 billion from Saudi Arabia and China — $5 billion from Saudi Arabia and $4 billion from China — in addition to the $3 billion placed by the UAE.
