The United Arab Emirates (UAE) has agreed in principle to extend the rollover of Pakistan’s $2 billion deposit for an additional two months at an interest rate of 6.5 per cent, officials said.
Sources confirmed that UAE has agreed to roll over the amount until April 17, 2026. Formal approval from relevant authorities is expected shortly.
Sources stated that the assurance was given after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior Emirati officials earlier this week.
The short-term extension comes at a critical time, as Pakistan and the International Monetary Fund prepare for third review talks. The decision was taken with just four days remaining before the expiry of the previous one-month extension.
Officials said Pakistan has informed the UAE that Islamabad would seek a longer-term rollover after concluding talks with the IMF.
It is worth noting that the UAE had granted a one-month extension in January upon the deposit’s maturity. A third tranche of $1 billion is due in July 2026.
Tahir Hussain Andarabi, who is the Spokesperson of Foreign Office, said that Ishaq Dar was personally overseeing the matter and was playing a key role through consultation and coordination with Emirati authorities.
He added that determining the rollover period was the lender’s prerogative and that the rollover had been secured through the deputy prime minister’s efforts.
He also referred to the finance minister’s statement that Pakistan’s external financing profile remains stable and that engagements with the IMF are moving in the right direction.
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