IMF Pressures Pakistan to Extend $2B UAE Deposit
Pakistan is facing pressure from the International Monetary Fund (IMF) to ensure the one-year rollover of a $2 billion deposit from the United Arab Emirates (UAE). This rollover is a critical requirement under the ongoing IMF economic review talks, which focus on Pakistan’s external financing commitments.
The issue arose after the deposit was not extended as anticipated under the agreed financing framework. IMF officials expressed concerns regarding this development during discussions with Pakistani authorities, emphasizing that securing the extension is vital for maintaining external account stability and meeting financing targets.
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In response, Pakistani authorities, including officials from the State Bank of Pakistan (SBP), have engaged urgently with the IMF delegation and UAE representatives to resolve the matter. The SBP officials indicated progress is being made, and efforts are underway to finalize the rollover with UAE authorities soon.
Sources from Pakistan’s Finance Ministry revealed that a meeting between the IMF mission and the UAE Ambassador is also being planned to facilitate the deposit extension and ensure alignment with IMF programme conditions.
Alongside the deposit extension discussions, negotiations between Pakistan and IMF representatives have addressed broader economic issues, including foreign exchange reserves, monetary policy, exchange rate stability, and financial sector oversight. Technical sessions have also focused on anti-money laundering measures, counter-terrorism financing, and banking regulations, involving the State Bank governor and senior officials.
The IMF delegation is continuing its engagements with central bank officials in Karachi over multiple days, with the outcomes of these talks expected to influence the release of the next tranche under the IMF programme.
Maintaining the deposit extension and meeting the IMF’s financing framework are seen as essential steps for Pakistan to stabilize its external accounts and sustain financial support amid ongoing economic challenges.