ISLAMABAD: The United Arab Emirates (UAE) has agreed in principle to extend Pakistan’s $2 billion deposit for two months, offering temporary relief ahead of key IMF review talks.
The move means the UAE extends Pakistan loan repayment until April 17, 2026. A senior official confirmed that Abu Dhabi has agreed to roll over the amount for a short period at an interest rate of 6.5%.
According to sources, Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior Emirati officials earlier this week to secure the extension.
Officials said the formal approval is expected soon. Previously, only four days remained before the earlier one-month extension expired.
The development comes at a critical time as Pakistan prepares for its third review talks with the International Monetary Fund (IMF). Therefore, the UAE’s decision is being seen as financially significant.
Sources added that Islamabad has informed the UAE it will seek a longer-term rollover after completing negotiations with the IMF.
It is important to note that the UAE had also granted a one-month extension in January when the deposit matured. Meanwhile, a third installment of $1 billion is due in July 2026.
Foreign Office spokesperson Tahir Hussain Andrabi said that Ishaq Dar is personally overseeing the matter. He added that rollover duration is decided by the lending country.
Furthermore, he stated that Pakistan’s external financial profile remains stable. The finance minister has also maintained that there is no gap in the country’s external financing and that IMF talks are moving in the right direction.
Overall, the short-term rollover provides breathing space as Pakistan works to secure long-term financial stability.