Short-term extension seen as crucial support amid Pakistan’s ongoing IMF review talks
ISLAMABAD: United Arab Emirates has agreed in principle to roll over a $2 billion deposit for Pakistan for an additional two months, offering temporary financial relief as Islamabad continues negotiations with the International Monetary Fund (IMF), officials said.
A senior government official stated that the extension will remain effective until April 17, 2026, at an interest rate of 6.5 percent. The assurance reportedly followed direct engagement by Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar with Emirati authorities in recent days.
Government sources described the development as an important step as Pakistan and the IMF continue discussions under the third program review. The previous one-month extension was nearing expiration, with only a few days remaining before the new approval.
Officials said Emirati authorities have been informed that Pakistan plans to seek a longer-term rollover after completing negotiations with the IMF. The deposit arrangement also includes a third installment of $1 billion due in July 2026.
Foreign Office spokesperson Tahir Hussain Andrabi confirmed that Dar is personally overseeing the matter and remains in constant contact with Emirati officials. He added that rollover duration is determined by the lending country, while Pakistan’s external financing outlook remains stable.
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