ISLAMABAD: The United Arab Emirates has agreed in principle to roll over Pakistan’s $2 billion deposit for a short period of two months, offering crucial financial support amid ongoing economic negotiations.
A senior official confirmed that the UAE has consented to extend the deposit until April 17, 2026, at an interest rate of 6.5 percent.
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.
Officials described the development as significant, particularly as Pakistan engages in its third review talks with the International Monetary Fund (IMF).
The decision comes just days before the expiry of a previous one-month extension.
Islamabad has informed the UAE that it will seek a longer-term rollover after concluding negotiations with the IMF.
Earlier in January, the UAE had granted a one-month extension when the deposit matured.
Additionally, a third tranche of $1 billion is due in July 2026.
Foreign Office spokesperson Tahir Hussain Andrabi stated that Ishaq Dar personally oversaw the matter and played a positive role in coordination with Emirati authorities.
He added that determining the rollover duration is the lender’s prerogative, and the latest extension has now been secured.
Officials also reiterated that Pakistan’s external financing profile remains stable and discussions with the IMF are progressing in the right direction.
