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UAE Agrees in Principle to Two-Month Rollover of $2 Billion Deposit for Pakistan at 6.5%

The stopgap extension buys time for a financing review tied to Pakistan’s IMF program.

Overview

  • Officials report the extension runs to April 17, 2026, with formal UAE approval still pending.
  • The assurance followed direct outreach by Deputy Prime Minister and Foreign Minister Ishaq Dar to senior Emirati officials.
  • The timing precedes IMF third‑review talks and a potential $1 billion disbursement under the $7 billion EFF.
  • The $2 billion is part of a $3 billion Abu Dhabi Fund for Development placement at the State Bank of Pakistan, with a third $1 billion tranche due in July 2026.
  • Islamabad plans to pursue longer‑tenor rollovers after IMF discussions, as officials reiterate that external financing remains on track and note Saudi Arabia’s prior one‑year extension of its $3 billion deposit.