ISLAMABAD (MNN); The United Arab Emirates has, in principle, approved a two-month extension on the rollover of Pakistan’s $2 billion deposit at an interest rate of 6.5 percent, according to official sources.
A senior government official confirmed that the amount will now be rolled over until April 17, 2026, with formal clearance from the concerned authorities expected soon.
Sources said the assurance came after Deputy Prime Minister and Foreign Minister Ishaq Dar reached out to senior Emirati officials earlier this week.
The short-term relief comes at a crucial juncture as Pakistan prepares for its third review negotiations with the International Monetary Fund. The decision was finalised just four days before the expiry of the previous one-month extension.
Officials indicated that Islamabad has conveyed to the UAE its intention to seek a longer-term rollover once discussions with the IMF are concluded.
Earlier, the UAE had granted a one-month extension in January when the deposit matured. Meanwhile, a third tranche of $1 billion is scheduled for July 2026.
Foreign Office spokesperson Tahir Hussain Andarabi stated that Ishaq Dar was personally supervising the matter and had played a constructive role through close coordination and consultations with Emirati authorities.
He emphasised that the duration of the rollover is determined by the lending country and noted that the extension was secured through the deputy prime minister’s diplomatic engagement.
The spokesperson also cited the finance minister’s remarks, maintaining that Pakistan’s external financing outlook remains stable and that ongoing talks with the IMF are progressing positively.
