UAE agrees to rollover $2bn loan for two months: report

The United Arab Emirates (UAE) has agreed to roll over $2 billion deposits for two months, reported The News.

According to the report, the assurance came after Pakistan Deputy Prime Minister Ishaq Dar contacted the UAE’s top officials earlier this week. Citing top Pakistani officials, the report said the UAE has granted a rollover until April 17 at an interest rate of 6.5%

Earlier, reports indicated that repayment of $2 billion in UAE deposits with the State Bank of Pakistan (SBP) was due in recent weeks, with initial doubts about routine rollovers.

Pakistan’s external debt profile is heavily short-term and exposed to geopolitical risks, as a major portion comes from “friendly” countries such as the UAE, Saudi Arabia, and China.

Meanwhile, an International Monetary Fund (IMF) mission is set to arrive in Pakistan later this month for the third review under the ongoing Fund programme.

Previously, Finance Minister Muhammad Aurangzeb told the media after the Senate Standing Committee on Finance and Revenue meeting that there is no shortfall in external financing.

He also confirmed at the time that discussions with the UAE on rollovers were underway. However, when Committee members asked whether the UAE had rolled over its loan for only one month. The finance secretary responded that this was not the case and said the question was not appropriate.