DUBAI – As Pakistan braces for pivotal showdown with the IMF, United Arab Emirates agreed to roll over $2 billion in deposits for two crucial months, giving Islamabad the breathing room it desperately needed.
United Arab Emirates agreed to short-term rollover of $2 billion in deposits for Pakistan for two months, giving Islamabad critical breathing space ahead of its high-stakes IMF review talks.
The assurance came after Deputy Prime Minister and Finance Minister Ishaq Dar personally coordinated with senior UAE officials, with the rollover set to remain in place until April 17, 2026.
The move comes just as Islamabad prepares for discussions on the third review and the $1 billion fourth tranche of the $7 billion Extended Fund Facility (EFF). According to sources, the UAE has granted the rollover at a 6.5% interest rate, with formal approval expected imminently.
A spokesperson from Pakistan’s Foreign Office confirmed Dar’s active role, emphasizing that the tenure of the rollover is fully under the depositor’s control. “Thanks to Dar’s positive coordination, the rollover is assured,” the official said, highlighting Pakistan’s strategic diplomacy.
Earlier, Abu Dhabi rolled over $2 billion for just one month, with $1 billion maturing on February 16 and the remaining on February 22. Pakistan had sought a two-year extension and plans to request a longer-term rollover after the IMF talks. Meanwhile, the third tranche of $1 billion is due in July 2026.
The South Asian nation is now aiming to rollover nearly $12 billion in external deposits for the current fiscal year, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE — a critical financial maneuver to secure the country’s stability.
Earlier this year, Deputy PM Dar hinted at plan to involve stakes in Fauji Fertilizer Group-linked companies, effectively ending repayment obligations for that portion of funds.
UAE, a long-standing financial partner, has already provided $3 billion in deposits to help stabilize Pakistan’s economy and unlock IMF support. Dar said discussions aim to finalize the investment by March 31, with the Fauji Foundation Group leading the process.
Pakistan also raised the issue of a $2 billion rollover due in January, signaling a preference for long-term investment over repeated rollovers. Economists note that while temporary deposit extensions ease immediate pressures, converting them into foreign direct investment strengthens the economy and reduces debt vulnerabilities.
The government also secured $5 billion from Saudi Arabia and $4 billion from China, shoring up reserves and meeting IMF requirements.
UAE approves another rollover of $2 Billion Loan for Pakistan
