The International Monetary Fund (IMF) delegation visiting Pakistan has urged Pakistani authorities to secure a rollover of the UAE’s $2 billion deposit with the State Bank of Pakistan (SBP) for a minimum of one year, as discussions on the country’s external financing program continue.
Sources indicate that during technical discussions with SBP officials, IMF representatives inquired about the status of the UAE deposit, which has yet to receive formal confirmation for a one-year rollover. SBP officials assured the delegation that positive developments are expected as negotiations progress.
There is potential for a meeting between IMF officials and the UAE ambassador to further discuss the matter.
Uncertainty over the rollover has heightened financial pressures on Pakistan. Deputy Prime Minister and Foreign Minister Ishaq Dar reassured that the UAE is not withdrawing the deposit and that negotiations are ongoing, with an expectation for a longer-term arrangement.
Similarly, Finance Minister Muhammad Aurangzeb confirmed ongoing contacts with the UAE regarding the rollover and emphasized that Pakistan is implementing its external financing plan agreed with the IMF.
A senior government official, speaking on condition of anonymity, confirmed active negotiations to extend the deposits.
During technical sessions in Karachi, IMF and SBP officials discussed key issues including foreign exchange reserves, monetary policy, exchange rate management, anti-terror financing, and banking regulations. The delegation is set to continue talks over the next two days.
Pakistan’s current account showed a surplus of $121 million in January, contrasting with a $393 million deficit in January 2025. However, during the first seven months of FY2026, the account recorded a $1.74 billion deficit, reflecting increasing external pressures.
The UAE currently holds $3 billion in deposits with the SBP. Of this, two $1 billion tranches maturing in January have been rolled over temporarily, with extensions due to expire in mid and late April. The third tranche is also nearing maturity and is expected to be rolled over.
The IMF delegation will also meet representatives from the Overseas Investors Chamber of Commerce and Industry in Karachi as part of the ongoing review process.
