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The United Arab Emirates (UAE) has officially confirmed the extension of its two deposits, each valued at $1 billion, with the State Bank of Pakistan (SBP) for an additional year, as announced by the central bank on Wednesday.
In a statement, the SBP revealed that the UAE had decided to rollover its two deposits, originally amounting to $1 billion each, with the State Bank of Pakistan. These deposits, which were set to mature in January 2024, have now been extended for another year, signifying the UAE’s continued commitment to its financial engagements with Pakistan.
UAE has confirmed rollover of its two deposits of US$1.0 billion each placed with State Bank of Pakistan for another one year which were maturing in January 2024.#SBP
— SBP (@StateBank_Pak) January 17, 2024
The confirmation of the rollover comes at a notable time for Pakistan, as it recently received $700 million from the International Monetary Fund (IMF) as part of the Stand-By Arrangement (SBA) bailout program. The SBA program is designed to provide financial support and policy guidance to countries facing balance of payments problems.
In a separate statement, the SBP announced the successful receipt of Special Drawing Rights (SDR) amounting to 528 million, equivalent to $705.6 million, from the IMF. This disbursement followed the successful completion of the first review by the IMF Executive Board under the Stand-By Arrangement.
The extension of the UAE’s deposits and the recent financial support from the IMF contribute to Pakistan’s efforts to address its economic challenges and strengthen its financial position. The rollover of the UAE deposits reflects continued confidence in Pakistan’s economic stability and the bilateral relationship between the two countries.
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