UAE Rolls Over $2 Billion Deposit for Pakistan Ahead of Key IMF Review. -

In a significant move for Pakistan’s economic stability, the United Arab Emirates (UAE) has agreed in principle to roll over $2 billion in deposits for an additional two months. This extension, confirmed on February 13, 2026, follows successful diplomatic efforts led by Deputy Prime Minister and Foreign Minister Ishaq Dar.

Key Highlights of the Extension

The rollover provides critical short-term relief as Pakistan navigates its international financial obligations:

New Maturity Date: The maturity date for the $2$ billion deposit has been pushed to April 17, 2026.
Interest Rate: The short-term rollover was secured at an interest rate of 6.5%.
Strategic Timing: This development arrives just days before the International Monetary Fund’s (IMF) third review mission later this month. A successful review is expected to unlock a $1 billion tranche under Pakistan’s $7$ billion Extended Fund Facility (EFF).
Previous Extensions: The UAE had previously granted a one-month extension in January when the deposits—split into two $1$ billion tranches—originally matured on January 16 and 22.
Future Strategy: While Pakistan initially sought a longer-term extension of up to two years, officials plan to re-engage UAE authorities for a long-term rollover after concluding current IMF negotiations.

Economic Impact and Confidence

Finance Minister Muhammad Aurangzeb reiterated that Pakistan’s external financing profile remains stable with “no financing gaps,” noting that discussions with the IMF are progressing positively. This rollover reinforces the State Bank of Pakistan’s (SBP) foreign exchange reserves and cements the strong bilateral and fraternal ties between Pakistan and the UAE.