UAE rolls over $2 billion loan to Pakistan ahead of IMF review

ISLAMABAD: The United Arab Emirates has agreed in principle to roll over a $2 billion deposit to Pakistan for two months, offering temporary financial relief to the cash-strapped nation ahead of a key International Monetary Fund (IMF) review.

The deposit, which was due to mature soon, will now be extended until April 17, 2026, according to a report by Geo News citing official sources.

The rollover is being granted at an interest rate of 6.5 per cent, with formal approval from relevant authorities expected shortly.

A senior official confirmed that Emirati authorities had decided to maintain the deposit for the short term to support Pakistan’s external financing position.

The development comes days before the expiry of a previous one-month extension granted in January. A third tranche of $1 billion from the UAE is due in July 2026.

Sources said that the rollover followed contacts this week between Deputy Prime Minister and Foreign Minister Ishaq Dar and senior UAE officials, during which Pakistan briefed them on its current financial situation.

Foreign Office spokesperson Tahir Andrabi said that Dar was personally overseeing the matter and playing a constructive role through consultations with Emirati authorities to secure the extension.

The move is seen as significant as Pakistan prepares for its third review talks with the IMF under its ongoing loan programme.

Officials said that the UAE had been informed Islamabad would approach it again for a longer-term rollover once negotiations with the IMF are concluded.

The Foreign Office said that the duration of any rollover is determined by the lending country, adding that the extension had been secured through diplomatic efforts led by the deputy prime minister.

Separately, Finance Minister Muhammad Aurangzeb has said there is no gap in the country’s external financing profile and that discussions with the IMF are progressing in the right direction.

Pakistan, which has faced persistent balance-of-payments pressures in recent years, relies heavily on financial support from friendly countries, including the UAE, Saudi Arabia and China, alongside IMF assistance to stabilise its economy.