Pakistan is hopeful about the possibility of the United Arab Emirates (UAE) rolling over $2 billion in deposits, as the country works to stabilize its financial situation, sources informed Geo News on Monday.
According to the sources within the finance ministry, caretaker Prime Minister Anwaar-ul-Haq Kakar has penned a letter to UAE President Mohamed bin Zayed Al Nahyan, seeking the rollover of two separate deposits due this month— one on January 17 and the other on January 20. These loans carry interest rates of 3% and 6.5%.
The UAE has deposited a total of $3 billion with the State Bank of Pakistan (SBP), and efforts are underway to secure the rollover of $2 billion. The sources stated that both the Prime Minister’s Office and the Ministry of Finance are actively addressing this matter.
As of December 29, the central bank’s foreign exchange reserves reached a more than five-month high of $8.221 billion. The government anticipates further enhancement of reserves following the approval of a loan from the International Monetary Fund (IMF).
The IMF’s Executive Board is set to consider Pakistan’s request for the completion of the first review and the release of the second tranche, totaling $700 million, on January 11 in Washington, as confirmed by the IMF.
