Islamabad: The United Arab Emirates has agreed in principle to roll over Pakistan’s $2 billion deposit for an additional two months, providing temporary relief to the country’s external financial position.
A senior official confirmed that the UAE has consented to extend the deposit until April 17, 2026. According to sources, the assurance was secured after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior Emirati authorities earlier this week and held detailed discussions on the matter.
Senior government sources stated that the short-term extension has been granted at an interest rate of 6.5 percent. Formal approval from the relevant authorities is expected at any time. The development comes at a critical moment, as only a few days remained before the expiry of the previous one-month extension, raising concerns in financial circles.
The move is being viewed as significant in the context of Pakistan’s ongoing third review talks with the International Monetary Fund. Officials believe the rollover will help maintain external financial stability. Emirati authorities have also been informed that Islamabad will approach them again for a longer-term rollover arrangement after concluding negotiations with the IMF.
It is worth noting that the UAE had granted a one-month extension in January upon the deposit’s maturity, while a third tranche of $1 billion is due in July 2026.
Foreign Office spokesperson Tahir Hussain Andrabi said that Ishaq Dar is personally overseeing the matter and is playing a positive role in coordination and consultations with Emirati officials. He clarified that determining the duration of a rollover remains the lender’s prerogative, but the latest extension was secured through diplomatic efforts.
Responding to a question, the spokesperson said he was not aware of the background of statements made by Finance Ministry officials in the National Assembly’s Standing Committee on Finance. He also referred to the Finance Minister’s statement that there is no gap in Pakistan’s external financing profile and that discussions with the IMF are progressing in the right direction.
