Pakistan’s central bank stated on Thursday that the United Arab Emirates had confirmed the rollover of its two $1 billion deposits placed with the State Bank of Pakistan for another year.
The deposits were maturing this month.
Earlier in January, Pakistan’s Prime Minister Shehbaz Sharif said that the UAE had agreed to extend the payment of $2 billion due this month.
Sharif mentioned that he met with UAE President Sheikh Mohammed bin Zayed Al Nahyan during his personal visit to Pakistan.
“In a one-on-one meeting, he said… there is a $2 billion repayment due, and we are extending this,” Sharif told reporters in a televised press conference.
“I requested the UAE to invest a few billion dollars in key investment projects, and that would be helpful,” Sharif added.
“He said the UAE was committed to this investment, and the two countries share brotherly ties,” he said.
Securing external financing has previously been a key condition for the International Monetary Fund (IMF) to approve bailout deals for Pakistan.
The next review of Pakistan’s $7 billion, 37-month loan program by the IMF is expected in February.
Pakistan’s $350 billion economy has been struggling for decades with boom-and-bust cycles, requiring 23 IMF bailouts since 1958.
