ISLAMABAD: The United Arab Emirates has agreed in principle to roll over a $2 billion deposit to Pakistan for two months, offering short-term financial relief to the cash-strapped nation ahead of an important International Monetary Fund (IMF) review.

According to official sources cited by Geo News, the deposit — which was due to mature soon — will now be extended until April 17, 2026. The rollover will be granted at an interest rate of 6.5 per cent, with formal approval from the relevant authorities expected shortly.

A senior official confirmed that Emirati authorities had decided to maintain the deposit in the short term to support Pakistan’s external financing position.

The development comes just days before the expiry of a previous one-month extension granted in January. Meanwhile, a third tranche of $1 billion from the UAE is also due in July 2026.

Sources said the rollover followed recent contacts between Deputy Prime Minister and Foreign Minister Ishaq Dar and senior UAE officials, during which Pakistan briefed them on its current financial situation.

Foreign Office spokesperson Tahir Andrabi said Dar was personally overseeing the matter and playing a constructive role through consultations with Emirati authorities to secure the extension.

The move is being seen as significant as Pakistan prepares for its third review talks with the IMF under its ongoing loan programme. Officials said Islamabad would approach the UAE again for a longer-term rollover once negotiations with the IMF are concluded.

The Foreign Office noted that the duration of any rollover is determined by the lending country, adding that the extension was secured through diplomatic efforts led by the deputy prime minister.

Separately, Finance Minister Muhammad Aurangzeb has stated that there is no gap in Pakistan’s external financing profile and that discussions with the IMF are progressing in the right direction.

Pakistan continues to face balance-of-payments pressures and relies heavily on support from friendly countries, including the UAE, Saudi Arabia and China, alongside IMF assistance to stabilise its economy.