The United Arab Emirates has assured Pakistan of rolling over $2 billion in deposits with the State Bank of Pakistan, key officials say.
The assurance comes at a time when Pakistan is navigating tight foreign exchange reserves and preparing for important talks with the International Monetary Fund.
Deputy Prime Minister and Foreign Minister Ishaq Dar told reporters that the UAE has agreed not to withdraw the $2 billion and that discussions are continuing to finalise the rollover for a longer period than past arrangements. This support is considered helpful for stabilising Pakistan’s macroeconomic position.
The funds have been held with the central bank and are part of broader efforts to maintain reserve stability while Pakistan meets its external financing needs.
Officials emphasised that the rollover talks are progressing and expressed confidence that the renewed arrangement will be agreed soon.
Pakistan has recently secured foreign loan inflows from multiple partners, but rollover of existing deposits remains critical to ease pressure on reserves. The rollover from the UAE is seen as part of this wider external financing strategy.
Support from friendly countries helps buffer balance of payments challenges and provides breathing space ahead of key IMF reviews.
Finance Minister Muhammad Aurangzeb has also said there is “no issue” with the rollover and Pakistan remains in contact with Emirati authorities to finalise the terms. He stressed that communications are active and that the rollover should proceed smoothly.
The assurance from the UAE is expected to reassure markets and international partners as Pakistan continues to address reserve challenges and external financing obligations.