The International Monetary Fund has asked Pakistan to ensure a one-year rollover of a $2 billion deposit placed by the United Arab Emirates, making it a crucial condition during ongoing economic review talks.
The requirement has emerged as a key component of Pakistan’s external financing commitments under the IMF-supported programme. Officials confirmed that the issue surfaced after the deposit was not extended for another year as anticipated under the agreed financing framework.
According to sources, IMF officials raised concerns during discussions, stressing that the extension is vital to maintain programme alignment and meet external account targets. The matter has prompted urgent diplomatic and financial engagement by Pakistani authorities.
The State Bank of Pakistan briefed the visiting IMF delegation and indicated that progress is underway. Officials expressed optimism that a resolution could be achieved soon, adding that the government remains in active contact with UAE authorities to finalize the rollover.
Finance Ministry sources revealed that a meeting between the IMF mission and the UAE Ambassador is also likely. The engagement is aimed at facilitating coordination and ensuring compliance with programme requirements tied to external financing stability.
The IMF has emphasized that securing the deposit extension is critical for safeguarding foreign exchange reserves and maintaining broader economic stability. The outcome could influence the timing of the next tranche under the programme.
Meanwhile, talks between the IMF and Pakistani officials have focused on foreign exchange reserves, monetary policy, exchange rate management and financial sector oversight. Technical-level sessions also covered anti-money laundering measures, counter-terrorism financing and banking regulations.
The IMF delegation is expected to continue engagements with central bank officials in Karachi over the next two days, with developments closely watched by markets and policymakers.
Also read: IMF Projects Inflation Rise in Pakistan
