The United Arab Emirates (UAE) has agreed to roll over Pakistan’s $2 billion deposit for a period of two months.
According to a report in The News, The reprieve came after Pakistan’s Deputy Prime Minister Ishaq Dar approached the UAE government earlier. Subsequently, UAE has allowed the rollover of the funds until April 17 at an interest rate of 6.5%.
It should be noted that the State Bank of Pakistan was expected to return the $2 billion deposit.
Pakistan’s external liabilities are predominantly short-term, making them more exposed to geopolitical uncertainties, particularly since a large share is owed to friendly nations such as the UAE, Saudi Arabia, and China.
Earlier, Finance Minister Muhammad Aurangzeb, while addressing the media following a meeting of the Senate Standing Committee on Finance and Revenue, stated that there was no gap in external financial support.
He also said that talks with the UAE over the rollover were in progress. However, when committee members inquired whether the UAE had extended the loan for just one month, the finance secretary rejected the suggestion and described the question as inappropriate.
