UAE rolls over $2bn Pakistan loan before IMF review

Pakistan & UAE – (Web Desk) – The United Arab Emirates has agreed to extend a $2 billion deposit for Pakistan on a short-term basis, rolling it over for two months as Islamabad heads into crucial talks with the International Monetary Fund (IMF), The News reported on Friday.

The assurance was conveyed after Deputy Prime Minister and Foreign Minister Ishaq Dar held discussions with senior UAE officials earlier this week. A senior official confirmed that the rollover will remain in place until April 17, 2026.

This development comes ahead of Pakistan’s upcoming IMF review, which will determine the release of the fourth $1 billion tranche under the $7 billion Extended Fund Facility (EFF).

According to official sources, the rollover has been approved at an interest rate of 6.5 percent. They added that final procedural approval from the relevant authorities is still awaited but is expected soon.

Responding to questions, the Foreign Office spokesperson said he was not aware of the specific context of remarks made by finance ministry officials during a meeting of the Standing Committee on Finance. However, he confirmed that the deputy prime minister is actively handling the matter and remains in close coordination with UAE authorities.

“The duration of the rollover is entirely the depositor’s decision,” the spokesperson said, adding that Pakistan remains confident due to Ishaq Dar’s constructive engagement. “As long as the rollover continues, the situation remains under control.”

Pakistan has secured an in-principle agreement from the United Arab Emirates to roll over a $2 billion deposit for two months, providing short-term financial relief

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— ProPakistani (@ProPakistaniPK) February 13, 2026

He also referred to statements made by the finance minister that there was no external finance gap in terms of Pakistan’s profile, including with reference to the country’s engagement with the IMF.

Earlier, the UAE had rolled over $2 billion for just one month, with $1 billion maturing on February 16 and the remaining $1 billion on February 22.

The government had requested the UAE to roll over the deposit for two years and subsequently submitted a fresh request for extension of the facility. It has been conveyed to the UAE that after the IMF review talks, Islamabad will again approach the authorities to seek a longer-term rollover of the deposits.

In January, the UAE had rolled over $2 billion for one month after the amount matured. A third tranche of $1 billion is due to mature in July 2026.

During December, the Ministry of Finance had prepared working papers and drafted a letter to the UAE government seeking rollover of the full $3 billion for one year. The government had hoped the rollover would be secured in advance, as in previous instances, but the UAE initially agreed to only a one-month extension.

Last week, officials from the Ministry of Finance were unable to give a clear assurance to a parliamentary committee regarding the rollover of the full $3 billion deposit, placing responsibility on the Ministry of Foreign Affairs.

The finance minister told the committee that Pakistan has provided the IMF with a clear external financing plan and that talks with the UAE authorities were continuing. He said bilateral arrangements were on track and that any change in the situation would be communicated.

According to officials, the Abu Dhabi Fund for Development has placed $3 billion with the State Bank of Pakistan in three separate tranches. Two tranches of $1 billion each matured on January 17 and January 23 and were rolled over for one month, while the third tranche of $1 billion is due to mature in July and will be taken up for rollover closer to its maturity.

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In December, Saudi Arabia agreed to extend the maturity of its $3 billion deposit with the State Bank of Pakistan by another year. Under a 2021 agreement, Riyadh had placed $3 billion with Pakistan’s central bank.

For the current fiscal year, Pakistan is seeking rollover of approximately $12 billion in external deposits, including around $9 billion from Saudi Arabia and China — $5 billion from Saudi Arabia and $4 billion from China — in addition to the $3 billion placed by the UAE.