UAE extends Pakistan’s $2 bn deposit for two months

ISLAMABAD: The United Arab Emirates (UAE) has agreed in principle to extend the rollover of Pakistan’s $2 billion deposit for two more months. This decision gives temporary relief to Pakistan’s financial situation.

A senior official said the UAE has agreed to roll over the deposit until April 17, 2026. The decision came after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior Emirati officials earlier this week.

According to government sources, the two-month extension has been approved at an interest rate of 6.5 percent. Formal approval from the relevant authorities is expected soon.

This development is important because Pakistan is currently holding third review talks with the International Monetary Fund (IMF). The new extension was agreed just a few days before the previous one-month extension was about to end.

Officials said the UAE has been informed that after the IMF talks are completed, Pakistan will request a longer-term rollover of the deposit.

Earlier, the UAE had given a one-month extension in January when the deposit matured. Meanwhile, a third payment of $1 billion is due in July 2026.

Foreign Office Spokesperson Tahir Hussain Andrabi said that Ishaq Dar is personally monitoring the matter. He added that the deputy prime minister is in close contact with UAE authorities to ensure continued financial support.

The spokesperson also said that the length of any rollover is decided by the lending country. He mentioned that the latest extension was secured through the efforts of the deputy prime minister. He further shared that Pakistan’s external financing needs are fully covered and that talks with the IMF are moving in a positive direction.