ISLAMABAD As the authorities work to keep the nation’s financial affairs afloat, Pakistan is hoping that the United Arab Emirates (UAE) will roll over $2 billion in deposits, sources informed Geo News on Monday.
Caretaker Prime Minister Anwaar-ul-Haq Kakar has written a letter to UAE President Mohamed bin Zayed Al Nahyan requesting the rollover, according to sources in the finance ministry who spoke with Geo News.
According to the sources, two distinct deposits—one on January 17 and the other on January 20—will mature during the current month. They further mentioned that the interest rates on the loans were 3% and 6.5%.
According to the reports, the oil-rich Gulf state has $3 billion in total debts deposited with the State Bank of Pakistan (SBP).
“Perhaps the $2 billion in deposits will soon be rolled over by the UAE. The sources stated that the problem is being worked on by the Ministry of Finance and the Prime Minister’s Office.
As of December 29, the central bank’s foreign exchange reserves stood at $8.221 billion, a five-month high. The government is expecting further growth following an approval of a loan by the International Monetary Fund (IMF).
Additionally, the IMF has stated that on January 11 in Washington, its Executive Board would take Pakistan’s request into consideration for the completion of the first review and the delivery of the second tranche, valued at $700 million.
