UAE Agrees To Rollover $2bn Loan For Two Months

UAE rolls over $2bn deposits for two months at 6.5%, easing Pakistan’s external financing concerns ahead of IMF review.

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The United Arab Emirates has agreed to roll over $2 billion in deposits placed with the State Bank of Pakistan for two months, offering temporary relief to Pakistan’s external financing position, according to a report by The News.

The assurance reportedly followed contact earlier this week between Deputy Prime Minister Ishaq Dar and senior UAE officials. The rollover has been granted until April 17 at an interest rate of 6.5%, officials familiar with the development said.

The repayment had been due in recent weeks, with uncertainty initially surrounding whether the UAE would extend the deposits under routine rollover arrangements. Pakistan’s external debt structure remains heavily reliant on short-term financing from “friendly” countries, including the UAE, Saudi Arabia, and China, exposing it to geopolitical and refinancing risks.

The development comes ahead of an expected visit by an International Monetary Fund (IMF) mission later this month for the third review under Pakistan’s ongoing programme.

Earlier, Finance Minister Muhammad Aurangzeb had stated that there was no shortfall in external financing, confirming discussions with the UAE were ongoing. Officials have maintained that concerns over a shorter rollover period were misplaced.