UAE to Rollover $2 Billion Loan to Pakistan for Extended Period: Ishaq Dar

The United Arab Emirates has agreed to rollover a $2 billion loan to Pakistan for a longer tenure this time, Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed on Wednesday.

Speaking informally to the media, Dar described the deposits as secure and assured that the rollover process would be automatic, providing a significant boost to Pakistan’s external financing outlook.

Financial Stability Support

The $2 billion deposit, placed by the UAE with the State Bank of Pakistan, plays a crucial role in supporting the country’s foreign exchange reserves. Such rollovers are often key components of Pakistan’s efforts to maintain macroeconomic stability and meet conditions set by international lenders.

Dar emphasized that the renewed arrangement reflects the strong bilateral ties between Pakistan and the UAE. By extending the tenure of the deposit, the Gulf nation has provided Islamabad with additional breathing space amid ongoing economic reforms and fiscal consolidation efforts.

Automatic Rollover Mechanism

According to the foreign minister, the rollover will take place automatically, ensuring continuity without any disruption to Pakistan’s financial position. This assurance is particularly significant as Pakistan continues to navigate external financing pressures and manage its balance-of-payments situation.

The development comes at a time when the government is working to stabilize the economy through structural reforms, improved revenue generation, and strengthened international partnerships.

With the UAE’s continued financial backing, policymakers hope to reinforce investor confidence and maintain stability in the country’s foreign exchange market.