$2 Billion UAE Rollover Crucial as Pakistan’s External Pressures Mount
Islamabad : Pakistan’s economic managers have 12 days remaining to secure the rollover of $2 billion in deposits placed by the United Arab Emirates with the State Bank of Pakistan, as failure to do so would require repayment of the full amount later this month.
Under the original repayment schedule, $1 billion was due on January 17 and another $1 billion on January 23, 2026. The UAE, however, granted Pakistan a one-month extension on both payments, providing temporary relief and easing immediate pressure on the country’s external accounts.
The rollover is considered critical for maintaining Pakistan’s foreign exchange reserves and reducing pressure on the balance-of-payments position. Following the extension, the Ministry of Finance submitted a fresh request seeking a one-year rollover of the deposits until February 16, 2026.
Despite continued engagement with the UAE authorities, the deadline remains unchanged and the outcome of the request is still uncertain. Officials say discussions are ongoing, but no formal decision has yet been communicated.
In addition to the $2 billion deposits, a third UAE deposit of $1 billion is scheduled for repayment in July 2026, further adding to Pakistan’s external financing requirements.
Finance Minister Ishaq Dar recently visited Dubai as part of efforts to secure the rollover. However, sources indicate that the visit has not yet yielded a formal agreement.
A senior official in the Finance Division confirmed that Pakistan has formally submitted its request to the UAE and that negotiations on the matter are currently underway.
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