UAE extends $2 billion loan rollover for Pakistan

The United Arab Emirates (UAE) has granted Pakistan a two-month extension on the rollover of a $2 billion loan, ARY News reported on Friday, citing sources from the Ministry of Finance.

Previously, the UAE had rolled over the same $2 billion loan for one month. The original one-month rollover period was set to expire on 16 February and 22 February, respectively.

The new rollover now extends the repayment period to 16 April and 22 April.

The Pakistani government had initially requested a two-year rollover for the $2 billion loan. Following the first request, a second request was made for the current rollover.

Sources indicated that the request to the UAE was made to successfully complete the IMF economic review. Once the economic review is concluded, the government plans to resume talks with the UAE regarding the loan.

Under the $7 billion IMF programme, the UAE, Saudi Arabia and China have committed to maintaining their combined $12.5 billion in cash deposits with the SBP at least until the programme expires in September next year.

Pakistan ‘confident’ of meeting IMF condition of external loans

Pakistan is set to fulfill a key International Monetary Fund (IMF) condition by securing timely loans and rollovers from friendly countries.

According to the Ministry of Finance sources, the government is optimistic about the rollover of $12 billion in deposits from allied nations. Saudi Arabia, China, and the United Arab Emirates have assured Pakistan of rolling over their loans on time.

Currently, Saudi Arabia holds $5 billion in time deposits within Pakistan’s foreign exchange reserves, while the UAE has placed $3 billion and China maintains $4 billion in safe deposits.