UAE rolls over $2bn loan for 2 months 

United Arab Emirates has rolled over a $2 billion loan to Islamabad for another two months, providing crucial support to the country’s external financing position.

The development comes as Pakistan prepares for the IMF’s third economic review under its $7 billion loan program. According to officials from the Ministry of Finance, the UAE has extended the $2 billion deposit until April 16 and 22.

Previously, the UAE had rolled over the same amount for only one month, with that extension set to expire on February 16 and 22.

Pakistan is scheduled to repay $2 billion to the UAE in April this year and an additional $1 billion in July. Finance Ministry officials said the government had originally requested a two-year rollover from the UAE to ensure financial stability.

After the initial request, Islamabad again asked Abu Dhabi to roll over the $2 billion to help make the upcoming IMF economic review successful.

The UAE will receive an annual interest rate of 6.5% on the rolled-over loan.

An IMF delegation is expected to arrive in Pakistan in the last week of this month for the third economic review under the $7 billion Extended Fund Facility program.

Officials say financing arrangements under the IMF program have been completed, and rollover arrangements with friendly countries will continue.

If negotiations conclude successfully, Pakistan will receive the next installment of $1 billion from the IMF.