Pakistan in talks with UAE for USD 2B deposits rollover: finance minister

Pakistan is in contact with the United Arab Emirates regarding the rollover of its deposits and sees no cause for concern, Finance Minister Muhammad Aurangzeb said on Wednesday.

Speaking to reporters, Aurangzeb said discussions were ongoing with the UAE over the rollover of loans, adding that there was “no issue” regarding the renewal of Emirati deposits.

“We are in contact with them,” he said, responding to a question about the status of the UAE deposits. “Why should there be concern? Why is the media worried about it?”

Pakistan has relied on rollovers of deposits from friendly countries, including the United Arab Emirates, to help shore up its foreign exchange reserves as it implements economic reforms under the IMF program.

The United Arab Emirates has agreed in principle to roll over a $2 billion deposit with Pakistan for two months, extending the facility until April 17.

Earlier, the UAE had extended the maturity of the same $2 billion deposit for one month after $1 billion matured on February 16 and another $1 billion on February 22. In January, the UAE had similarly granted a one-month rollover when the amount matured.

The government has sought a longer-term rollover of the deposit and conveyed to UAE authorities that it would again request an extended arrangement after completion of the IMF review.

According to officials, the Abu Dhabi Fund for Development has placed $3 billion with the State Bank of Pakistan in three tranches of $1 billion each. Two tranches that matured in January were rolled over for one month, while the third tranche of $1 billion is due to mature in July 2026.

In December, Saudi Arabia extended the maturity of its $3 billion deposit with the State Bank of Pakistan by one year.

IMF delegation visit

Aurangzeb said Pakistan was implementing the financing plan agreed with the International Monetary Fund and that an IMF delegation had arrived in Karachi.

Talks with the visiting IMF team will begin Monday in Islamabad, he said. The discussions will take place under the third economic review and will include a performance review of Pakistan’s commitments under the IMF program.

The finance minister said Pakistan was in a strong position regarding tax collections by the Federal Board of Revenue and that tax revenue would also be discussed with the IMF delegation.