ISLAMABAD — The United Arab Emirates (UAE) has agreed to extend the rollover of a $2 billion loan to Pakistan for an additional month, sources confirmed on Tuesday.
Read More: Pakistan negotiates major UAE debt relief
Pakistan had requested a longer rollover period for a total of $3 billion, including a $1 billion tranche due to mature in July. Officials say the country has asked the UAE to extend all three tranches for one year, in line with the conditions of the International Monetary Fund (IMF) programme.
متحدہ عرب امارات نے پاکستان کو دیئے 2 ارب ڈالر کے قرضہ کی واپسی کیلئے پاکستان کو ایک مہینے کا مزید وقت دے دیا ۔۔ جبکہ اسی یو اے ای نے ہفتہ پہلے بھارت کے ساتھ200ارب ڈالر کی تجارت کا معاہدہ کیا ہے۔۔۔
ہم کب تک ادھار مانگ کر شرمندہ ہوتے رہینگے؟ pic.twitter.com/uPiOwGXONv— Sehrish Maan (@SMunirMaan) February 3, 2026
Under the IMF deal, Pakistan is required to secure the rollover of $12 billion in external loans during the current financial year. The rollover of the $3 billion from the UAE is considered a key component of meeting these obligations. The UAE currently holds $3 billion in deposits with Pakistan’s central bank.
This marks the first time the UAE has approved only a one-month extension, compared with previous rollovers, which typically lasted a full year. Officials expressed optimism that discussions could lead to a one-year extension for all tranches in the near future.
Under the $7 billion IMF programme, Saudi Arabia, China, and the UAE have committed to maintaining a combined $12.5 billion in cash deposits with the State Bank of Pakistan (SBP) until the programme expires in September next year.
Read More: Pakistan seeks $3 billion deposit rollover from UAE
The current extension provides temporary relief for Pakistan’s external financing needs while authorities continue negotiations with the UAE to secure longer-term debt rollover arrangements. Officials expect further clarity on the tenor and maturity of the loans in the coming days.