Pakistan central bank says UAE has confirmed rollover of $2 billion deposits

A dealer counts US dollars at a money exchange market in Karachi, Pakistan, on January 27, 2023. (AFP/File)
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Updated 17 January 2025
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Pakistan central bank says UAE has confirmed rollover of $2 billion deposits

  • The development comes ahead of a review of Pakistan’s $7 billion IMF program, expected in Feb.
  • The UAE has rolled over deposits with Pakistan since 2023, helping it shore up its foreign reserves

ISLAMABAD: The United Arab Emirates (UAE) has confirmed a rollover of $2 billion deposits with Pakistan, the Pakistani central bank said on Thursday.

The Gulf country has rolled over the deposits with Pakistan’s central bank since 2023, helping the South Asian country shore up its foreign exchange reserves, strengthen its currency and secure financial bailouts from the International Monetary Fund (IMF).

Pakistan’s $350 billion economy has struggled for decades with boom-and-bust cycles and the South Asian country secured a $7 billion, 37-month loan program from the IMF in Sept. last year. The next review of the program is expected in February.

“UAE has confirmed rollover of its two deposits of $1.0 billion each placed with State Bank of Pakistan for another one year, which were maturing in January 2025,” the Pakistani central bank said in a statement.

The development comes more than a week after Prime Minister Shehbaz Sharif met UAE President Sheikh Mohamed bin Zayed Al-Nahyan in the Pakistani city of Rahim Yar Khan. Sharif later told his cabinet that the UAE president had agreed to roll over the $2 billion loan, which was due to mature this month.

The UAE is Pakistan’s third-largest trading partner after China and the United States (US), and a major source of foreign investment, valued at over $10 billion in the last 20 years, according to the UAE foreign ministry. It is also home to more than a million Pakistani expatriates, who are one of the major sources of remittances to the South Asian country.

In January last year, Pakistan and the UAE signed multiple agreements worth more than $3 billion for cooperation in railways, economic zones and infrastructure, a Pakistani official said, amid Pakistani caretaker prime minister Anwaar-ul-Haq Kakar’s visit to Davos, Switzerland to attend 54th summit of the World Economic Forum (WEF).

Pakistan’s foreign exchange reserves stood at $16.45 billion as of January 10, with SBP-held reserves at $11.73 billion, according to the central bank.

In the past, Pakistan has also secured external financing, a key condition for IMF bailouts, from longtime allies Saudi Arabia and China.


Pakistan’s defense minister backs army spokesman’s criticism of Imran Khan

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Pakistan’s defense minister backs army spokesman’s criticism of Imran Khan

  • Khawaja Asif calls the military’s response to Khan’s recent remarks ‘measured’
  • He accuses Khan’s PTI party of ‘changing its identity’ by siding against Pakistan

ISLAMABAD: Pakistan’s Defense Minister Khawaja Asif on Saturday defended a scathing news conference by the military’s spokesman a day earlier, in which the latter accused former prime minister Imran Khan of promoting an anti-state narrative that he said had become a national security threat.

Lt. Gen. Ahmed Sharif Chaudhry, who heads the military’s media wing as director general of Inter-Services Public Relations (ISPR), addressed journalists on Friday in response to Khan’s latest social media post accusing Chief of Defense Forces Field Marshal Asim Munir of being responsible for “the complete collapse of the constitution and rule of law in Pakistan.”

During the briefing, Chaudhry described the incarcerated former premier as a “narcissist” and a “mentally ill individual,” though he said it up to the government to determine how it wanted to deal with him.

Asked about the military’s viewpoint against Khan and his Pakistan Tehreek-e-Insaf (PTI) party, Asif told reporters in the city of Sialkot the former premier had long used harsh language against state institutions and political opponents.

“When this kind of language is used for individuals as well as for institutions, then a reaction is a natural outcome,” he said. “The same thing is happening on the Twitter accounts being run in his [Khan’s] name. If the DG ISPR has given any reaction to it, then I believe it was a very measured reaction.”

The minister said Khan and PTI leaders had continued to target the army despite the sacrifices made by soldiers in the fight against militancy and during the four-day conflict with India in May.

He said PTI should recognize those sacrifices by supporting “our soldiers and martyrs” rather than “the terrorists.”

“Imran Khan speaks on every issue. Why did he not speak [in favor of the military] during the war [with India]?” Asif said. “Even during the war he kept targeting the military leadership. He continued to use inappropriate language for them.”

“People whose conduct is like this, whose language does not spare even the martyrs, how can they say ... that the DG ISPR should not say this or should not say that?” he continued. “He absolutely should.”

Asif added that Khan and his party had “changed their identity,” adding they were no longer standing with Pakistan.

PTI has not officially responded to his comments yet.