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SBP Confirms UAE Shifts $2 Billion Loan to Monthly Rollovers, Discloses $24 Billion FX Purchases

Reserves stand above $16 billion, with targets of $18 billion by June 2026 then $20 billion by December.

Overview

  • Officials said the IMF was notified of the monthly rollover change and requires UAE, Saudi Arabia and China to keep $12.5 billion in deposits with the SBP until the programme ends in September 2027.
  • The central bank bought about $24 billion from the local market over three years to rebuild reserves, a tactic it acknowledged has kept pressure on the rupee.
  • Governor Jameel Ahmad indicated further reserve accumulation this year will rely on additional market purchases.
  • Pakistan pays roughly $130 million a year in interest on the UAE facility after the rate rose to about 6.5% from 3% in 2018, with the $2 billion counted within SBP reserves.
  • Exports remain under strain due to weaker global food prices, and an oil price of $100 per barrel could add about $1.2 billion to the import bill over the rest of the fiscal year.