UAE $2bn Loan Rollover Supports Pakistan Before IMF Review
The UAE $2bn rollover gives Pakistan short term financial relief. The extension comes just before key talks with the International Monetary Fund (IMF). As a result, Islamabad gains more breathing space during negotiations. According to reports, the United Arab Emirates agreed to extend a $2 billion deposit for two months. The facility will now continue until April 17, 2026. Officials confirmed the rate stands at 6.5 percent. Deputy Prime Minister and Foreign Minister Ishaq Dar played a central role in the discussions. He contacted senior UAE officials earlier this week. Therefore, the extension moved forward smoothly.
Why the Extension Matters
Pakistan is preparing for the third review under the IMF’s $7 billion Extended Fund Facility. In addition, the country hopes to secure a $1 billion tranche. The timing of the rollover is critical. Officials say the extension remains a short term measure. However, Pakistan plans to seek a longer arrangement after the IMF review. This strategy could strengthen investor confidence. A Foreign Office spokesperson confirmed that coordination with UAE authorities remains positive. He stressed that the depositor decides the tenure. As long as the rollover continues, the situation stays under control.
Past Deposits and Future Plans
Earlier, the UAE extended the same amount for just one month. Two separate tranches of $1 billion matured in February. Both were rolled over briefly. The Abu Dhabi Fund for Development has placed $3 billion with the State Bank of Pakistan. One tranche will mature in July 2026. Officials will discuss its rollover closer to that date. Meanwhile, Saudi Arabia extended its own $3 billion deposit last year. These bilateral arrangements help Pakistan manage its external financing needs.
Bigger Financial Picture
For the current fiscal year, Pakistan seeks rollover of about $12 billion in deposits. This amount includes support from Saudi Arabia and China. Therefore, continued cooperation remains essential. The finance minister told lawmakers that no external financing gap exists. He added that talks with partners are ongoing. Any changes, he said, will be shared openly. In short, the UAE $2bn rollover offers stability at a crucial time. It also shows continued diplomatic engagement. Now, all eyes remain on the upcoming IMF review.
