The United Arab Emirates (UAE) has agreed in principle to extend the rollover of Pakistan’s $2 billion deposit for a further two months at an interest rate of 6.5 per cent, sources said.

A senior official confirmed that the UAE has agreed to roll over the amount until April 17, 2026. Formal approval from relevant authorities is expected shortly.

Sources said the assurance was given after Deputy Prime Minister and Foreign Minister Ishaq Dar contacted senior Emirati officials earlier this week.

The short-term extension comes at a critical time, as Pakistan and the International Monetary Fund prepare for third review talks. The decision was taken with just four days remaining before the expiry of the previous one-month extension.

Officials said Pakistan has informed the UAE that Islamabad would seek a longer-term rollover after concluding talks with the IMF.

It may be recalled that the UAE had granted a one-month extension in January upon the deposit’s maturity. A third tranche of $1 billion is due in July 2026.

Foreign Office spokesperson Tahir Hussain Andarabi said Ishaq Dar was personally overseeing the matter and was playing a positive role through consultation and coordination with Emirati authorities.

He added that determining the rollover period was the lender’s prerogative and that the rollover had been secured through the deputy prime minister’s efforts.

The spokesperson also referred to the finance minister’s statement that Pakistan’s external financing profile remains stable and that engagements with the IMF are moving in the right direction.