Pakistan has secured an in-principle agreement from the United Arab Emirates to roll over a $2 billion deposit for an additional two months, offering near-term support to Pakistan’s external financing position.

According to a senior government official cited in the report, the rollover will be provided at an interest rate of 6.5% and will now run until April 17, 2026. The earlier one-month extension was due to expire within days, while formal approval from relevant UAE authorities is still awaited, though officials expect it soon.

IMF review timing makes external support more important

The development comes as Pakistan prepares for the IMF’s third review under the $7 billion Extended Fund Facility (EFF). Completion of this review could pave the way for the release of a $1 billion tranche, making rollover assurances from bilateral partners a key part of the broader external financing picture.

Pakistan’s Foreign Office also confirmed engagement with UAE authorities on the rollover, with the report noting that Deputy Prime Minister and Foreign Minister Ishaq Dar reached out to senior UAE officials this week. A spokesperson described the rollover as assured and said the tenure remains the depositor’s prerogative.

UAE deposits with SBP: $3 billion across three tranches

The report adds that the UAE, through the Abu Dhabi Fund for Development, has placed $3 billion with the State Bank of Pakistan in three separate tranches. Two deposits of $1 billion each that matured in January were earlier rolled over for one month, while a third $1 billion tranche is due to mature in July 2026.

Pakistan wants longer tenors, but keeps getting short renewals

Islamabad had sought a longer rollover of up to two years, but has so far managed only short-term renewals. Officials indicated Pakistan may approach the UAE again for a longer extension after the IMF review process is completed.

Bigger picture: rollovers targeted across multiple partners

For the current fiscal year, Pakistan is seeking rollover of roughly $12 billion in external deposits, including support expected from partners such as Saudi Arabia and China, in addition to UAE funds. The report also notes that Saudi Arabia agreed in December to extend the maturity of its $3 billion deposit with Pakistan’s central bank by one year.