UAE agrees to two-month rollover of Pakistan’s $2bn deposit

2026-02-13 - 05:46

ISLAMABAD – The United Arab Emirates has agreed in principle to extend the rollover of Pakistan’s $2 billion deposit for a short period of two months, offering temporary relief to the country’s external financing position, official sources said on Thursday. A senior official confirmed that the UAE has consented to roll over the deposit until April 17, 2026. The decision followed contacts made by Deputy Prime Minister and Foreign Minister Ishaq Dar with senior Emirati officials earlier this week. According to government sources, the two-month extension has been granted at an interest rate of 6.5 percent, while formal approval from the relevant authorities is expected shortly. The development has assumed added significance as Pakistan is currently engaged in third review negotiations with the International Monetary Fund (IMF). The rollover was agreed just days before the expiry of a previous one-month extension. Officials said the UAE has been informed that after the conclusion of talks with the IMF, Pakistan will seek a longer-term rollover of the deposit. It is recalled that the UAE had earlier provided a one-month extension in January when the deposit matured. Meanwhile, the third tranche of $1 billion is due for repayment in July 2026. Foreign Office Spokesperson Tahir Hussain Andrabi said Deputy Prime Minister Ishaq Dar is personally overseeing the matter and remains in close coordination with Emirati authorities to ensure continued financial support. The spokesperson noted that the duration of any rollover is determined by the lending country, adding that the latest extension was secured through the efforts of the deputy prime minister. He also referred to the finance minister’s statement that Pakistan’s external financing needs are fully covered and that engagements with the IMF are moving in a positive direction.