The United Arab Emirates has agreed in principle to roll over Pakistan’s $2 billion deposit for a short period of two months, providing temporary relief to the country’s external financing position.
According to media reports, a senior official confirmed that the UAE has consented to extend the deposit until April 17, 2026, for a period of two months. Formal approval from the relevant authorities is expected shortly.
Sources said the assurance came after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior Emirati officials earlier this week to seek the extension.
According to high-level government sources, the UAE has granted the short-term rollover at an interest rate of 6.5 percent. The move comes at a critical time, as only four days were left before the expiry of the previous one-month extension.
The development is being viewed as significant in the context of Pakistan’s third review talks with the International Monetary Fund. Officials indicated that Islamabad has informed the UAE that it will approach again for a longer-term rollover after the conclusion of negotiations with the IMF.
It may be recalled that in January, the UAE had also provided a one-month extension upon the maturity of the deposit, while a third tranche of $1 billion is due in July 2026.
Foreign Office Spokesperson Tahir Hussain Andrabi said Ishaq Dar is personally overseeing the matter and is playing a positive role in consultation and coordination with Emirati authorities.
He further stated that determining the duration of the rollover is the prerogative of the lending country, adding that the efforts of the deputy prime minister have ensured the rollover.
Responding to a question, the spokesperson said he was not aware of the background of statements made by Finance Ministry officials before the National Assembly Standing Committee on Finance.
He also referred to the finance minister’s remarks that there is no gap in Pakistan’s external financing profile and that matters with the IMF are progressing in the right direction.
