The United Arab Emirates (UAE) on Friday extended the rollover of a $2 billion loan to Pakistan for an additional two months, providing temporary financial relief as the government works to complete a key economic review with the International Monetary Fund (IMF).
According to sources within the Finance Ministry, the U.A.E. agreed to roll over the $2 billion deposit until April 16 and April 22, respectively. The loan had previously been extended by one month, with maturities set for Feb. 16 and Feb. 22.
The government had requested the U.A.E. to roll over the loan for two years. After the initial request, Islamabad again sought an extension of the $2 billion facility to help ensure the successful completion of the IMF’s upcoming economic review.
Officials said the government aims to finalize the rollover process to strengthen its position ahead of the review. Following the successful completion of the review, Pakistan plans to engage in further discussions with the U.A.E. for a longer-term extension.
Pakistan has relied on financial support from friendly countries, including the U.A.E., to stabilize its foreign exchange reserves and meet external financing requirements under its IMF program.