Pakistan is facing increased pressure from the International Monetary Fund to secure a one-year extension of a $2 billion deposit provided by the United Arab Emirates. This condition has become a key requirement during Pakistan’s ongoing economic review talks with the IMF.
The deposit is an important part of Pakistan’s external financing plan under the IMF programme. However, concerns were raised when the deposit was not extended on time as expected under the agreed financial framework. This development has made the issue more urgent for Pakistani authorities.
To address the situation, officials from the State Bank of Pakistan briefed the visiting IMF delegation and assured them that efforts are underway to resolve the matter soon. The central bank stated that the government is actively engaging with UAE authorities to finalize the rollover of the deposit.
Finance Ministry sources revealed that a meeting between the IMF mission and the UAE Ambassador is also likely. This meeting aims to speed up the process and ensure that the requirements of the IMF programme are fully met.
The IMF has stressed that securing the extension of the UAE deposit is critical for Pakistan’s external account stability and for meeting its financing targets. Failure to secure the rollover could affect Pakistan’s foreign exchange reserves and future financial support under the programme.
Alongside this issue, discussions between the IMF and Pakistani authorities have focused on foreign exchange reserves, monetary policy, exchange rate stability, and financial sector regulation. Technical sessions also covered anti-money laundering measures, counter-terrorism financing, and banking regulations.
Senior officials, including the State Bank Governor, participated in these meetings. The IMF delegation is expected to continue talks with central bank officials in Karachi over the next two days. The outcome of these negotiations is likely to play an important role in determining the release of the next tranche of IMF funding for Pakistan.
