UAE Steps In To Support Pakistan, Extending $2 Billion Deposits With Pakistan Central Bank

State Bank of Pakistan said Thursday that the United Arab Emirates had confirmed the rollover of two $1 billion deposits, their maturity extended by another year. Two $1 billion deposits due to mature this month have been confirmed rolled over, Dawn reported, citing the State Bank of Pakistan.

The development comes as a follow-through from the statement issued by Prime Minister Shehbaz Sharif earlier this week, where he announced that the UAE had agreed to rollover the $2 billion payment due in January. The rollover is an important step in securing external financing, which is a pre-condition by the IMF for approving a $7 billion bailout package for Pakistan.

The nations involved were China, the UAE, and Saudi Arabia. These nations helped ensure Pakistan fulfilled the IMF’s demands through timely financing assurances last year. It was upon confirmation of these nations regarding debt rollovers that the IMF could release the fund disbursement. Thus, international support was what would stabilize Pakistan’s economy.