Pakistan’s Finance Minister Muhammad Aurangzeb has confirmed there are no issues with the rollover of $2 billion in UAE deposits, despite IMF concerns. The IMF has expressed apprehension over Pakistan’s failure to secure a one-year extension for these deposits, although the State Bank of Pakistan (SBP) assured the IMF mission that short-term arrangements are in place and discussions for a longer-term rollover are ongoing.
Aurangzeb, speaking after a National Assembly Standing Committee on Finance meeting, stated, ‘I categorically state that there is no issue in rollover whatsoever.’ He questioned media reports suggesting otherwise. The IMF review mission arrived in Islamabad on February 25, 2026, and held discussions with SBP officials about the rollover and other economic issues.
The IMF may seek direct assurances from the UAE ambassador when the full mission convenes next week. Deputy Prime Minister and Foreign Minister Ishaq Dar confirmed that the UAE had not withdrawn its deposit, and talks for a longer-term arrangement are underway. However, a senior government official, under anonymity, indicated the situation is critical as written assurance from the UAE is still pending.
Pakistan had secured a temporary two-month rollover for two $1 billion deposits, expiring on April 16 and April 23, 2026. The third $1 billion tranche is expected to follow suit. Pakistan might face an interest rate exceeding 6.5% on these deposits. The IMF delegation, during its stay until March 11, 2026, will continue discussions on foreign exchange reserves, monetary policy, and other financial matters.
In the fiscal year, Pakistan aims to roll over $12 billion in external deposits, including $9 billion from Saudi Arabia and China. The IMF mission will also engage with the Pakistan Business Council and the Overseas International Chambers of Commerce & Industries in Karachi. The outcomes of these talks could significantly impact Pakistan’s economic stability.
Published in SouthAsianDesk, February 26th, 2026
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