The State Bank of Pakistan (SBP) confirmed on Thursday that the United Arab Emirates (UAE) has agreed to renew two billion-dollar deposits for another year, which mature this month.
According to SBP, the UAE has renewed two deposits, each worth $1 billion, held in the State Bank of Pakistan for another year.
These deposits were due to mature in January 2025.
Prime Minister Shehbaz Sharif had announced last week that the UAE would extend the $2 billion payment due in January.
This renewal is vital for Pakistan’s external financing, which is a key condition for the IMF to approve the $7 billion bailout.
Last year, Pakistan obtained the IMF program with the help of China, the United Arab Emirates and Saudi Arabia, who provided the necessary financial guarantees for the IMF disbursements.
Previously, the State Bank also reported a weekly increase of $30 million in foreign exchange reserves, reaching $11.72 billion as of January 10, 2025.
Total liquid reserves amounted to $16.45 billion, of which commercial banks held $4.73 billion.
