The State Bank of Pakistan (SBP) confirmed on Thursday that the United Arab Emirates (UAE) has agreed to hand over two $1 billion deposits for another year due to expire this month.
The United Arab Emirates has transferred two deposits, each worth $1 billion, held at the State Bank of Pakistan for another year, according to the SBP.
These deposits were to expire in January 2025.
Prime Minister Shehbaz Sharif had announced last week that the United Arab Emirates would extend the $2 billion payment due in January.
This rollover is crucial to Pakistan’s external financing, which is a key condition for the IMF to approve the $7 billion bailout.
Last year, Pakistan secured the IMF program with the help of China, the United Arab Emirates and Saudi Arabia, which provided necessary financial assurances for IMF disbursements.
Earlier, the state bank also reported a weekly increase of $30 million in foreign exchange reserves, reaching $11.72 billion per month. 10 January 2025.
Total liquid reserves were $16.45 billion, with commercial banks holding $4.73 billion.
