The International Monetary Fund (IMF) has asked Pakistan to obtain a one-year rollover of a crucial $2 billion deposit due from the United Arab Emirates (UAE). IMF officials said that uncertainty over the deposit could negatively impact confidence in Pakistan’s economic recovery.
IMF seeks firm assurance
During the discussions this week, the IMF emphasized that it is important to secure the deposit for at least 12 months. The IMF expressed concerns regarding the lack of formal confirmation from Pakistan. They stated that the deposit is an important factor in supporting foreign exchange reserves and balance of payments stability.
State Bank of Pakistan officials told the IMF they are actively working to secure progress. They expressed optimism that an agreement with the UAE will be finalized soon. A source in the Ministry of Finance said officials plan a meeting between the IMF delegation and the UAE ambassador to speed up the process.
IMF representatives welcomed these efforts but said a firm rollover commitment is necessary. They noted that a temporary extension would only offer short-term relief and would not fully reassure markets about reserves and stability.
Wider economic talks continue
Besides the deposit, Pakistani authorities updated the IMF on the external financing plan under the current economic program. State Bank officials explained how the plan is progressing and said negotiations will continue if adjustments are needed.
The discussions also covered foreign exchange reserves, monetary policy, and exchange rate management. The IMF held technical talks with regulators on improving anti-money laundering measures, strengthening banking rules, and advancing financial sector reforms.
The IMF team, now in Karachi, will continue talks with central bank officials for another two days to clarify issues and push for progress.
