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Pakistan has received a lifeline from its Gulf ally, the United Arab Emirates (UAE), as it prepared for crucial IMF talks. The UAE agreed to extend a $2 billion deposit rollover until April 17, 2026, at an interest rate of 6.5 percent, sources reported.
A senior official confirmed this agreement after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted the Emirati delegation earlier this week. The decision came as Pakistan approached the final days before the expiry of its previous rollover period for the deposit.
The UAE’s decision is particularly critical given that Pakistan and IMF are due to discuss their third review soon, with Islamabad aiming for a longer-term solution post-IMF meetings. A third tranche of $1 billion is scheduled for July 2026.
Foreign Office spokesperson Tahir Hussain added that Ishaq Dar was personally overseeing the matter, emphasizing his positive role in consultation and coordination with Emirati authorities. He noted that determining the rollover period was within the lender’s prerogative, secured through the deputy prime minister’s efforts.
Meanwhile, Finance Minister stated that Pakistan’s external financing profile remains stable, indicating progress in ongoing engagements with the IMF. The news comes at a time when both countries are closely monitoring their financial relationships and navigating potential challenges.
The UAE’s decision marks a significant move for Pakistan as it attempts to secure its funding needs amidst growing concerns about international debt. The extension is seen as crucial for maintaining stability and confidence within Pakistan’s financial ecosystem, especially in the lead-up to major upcoming reviews with both the IMF and local creditors.