The United Arab Emirates has agreed to extend a $2 billion deposit placed with Pakistan for two months. The extension will remain in place until April 17, 2026. The decision comes at a sensitive time, as Pakistan prepares for an important review with the International Monetary Fund.

The assurance was given after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior UAE officials earlier this week. A top official confirmed that the rollover has been approved on a short-term basis at an interest rate of 6.5 percent. Formal approval is expected soon.

This development is crucial because Pakistan is preparing for the third review under the $7 billion Extended Fund Facility (EEF) with the IMF. After successful talks, Pakistan hopes to receive the fourth tranche of $1 billion from the program.

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Officials said the extension shows confidence from the UAE. The Foreign Office spokesperson confirmed that Ishaq Dar played a positive and active role in coordinating with the UAE authorities. He added that the duration of the rollover is the decision of the depositor and is not linked to other conditions.

Earlier, the UAE had extended $2 billion for just one month. One tranche of $1 billion matured on February 16, and another $1 billion on February 22. Both were rolled over temporarily. Another $1 billion tranche is due to mature in July 2026.

The government had originally requested a two-year extension. Later, it submitted a fresh request. Officials said Pakistan will again approach the UAE after the IMF review to seek a longer extension.

The Abu Dhabi Fund for Development has placed a total of $3 billion with the State Bank of Pakistan (SBP) in three separate tranches. Two of these have already been rolled over, while the third will be discussed closer to its maturity.

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Meanwhile, Saudi Arabia has already extended its $3 billion deposit with Pakistan for another year. Under a 2021 agreement, Riyadh had placed the amount with Pakistan’s central bank.

For the current fiscal year, Pakistan is seeking rollover of about $12 billion in external deposits. This includes around $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.

Finance officials have told the IMF that Pakistan has a clear external financing plan. They assured lawmakers that bilateral arrangements are moving smoothly and any changes will be shared.