ISLAMABAD: Ahead of the IMF’s visit to Pakistan, the UAE has extended a $2 billion loan for two months, easing pressure on Pakistan’s external financing. This comes as Pakistan prepares for the IMF’s third review under its $7 billion loan program.
The UAE’s rollover, valid until April 16 and 22, follows a previous one-month extension that was due to expire on February 16 and 22. Pakistan is expected to repay $2 billion in April and another $1 billion in July.
Originally, the government sought a two-year extension but later requested the UAE to extend the loan further to facilitate the IMF review. The UAE will receive an annual interest rate of 6.5% on the loan.
An IMF delegation will visit Pakistan in late February for the economic review under its Extended Fund Facility program. Financing arrangements have been completed, with plans for continued rollovers from friendly nations. A successful review could release another $1 billion installment from the IMF.
During talks, Pakistan will emphasize its external financing arrangements to secure IMF support. Officials plan further discussions with the UAE post-review to address long-term financial needs.
The rollover offers temporary relief for Pakistan as it navigates economic challenges and aims for financial stability ahead of crucial IMF negotiations.
