The State Bank of Pakistan(SBP) confirmed on Thursday that the United Arab Emirates (UAE) has agreed to roll over two $1 billion deposits for another year, set to mature this month.

The United Arab Emirates has rolled over two deposits, each worth $1 billion, held with the State Bank of Pakistan for another year, according to SBP.

These deposits were set to mature in January 2025.

Prime Minister Shehbaz Sharif had announced last week that the UAE would extend the $2 billion payment due in January.

This rollover is vital for Pakistan’s external financing, which is a key condition for the IMF to approve the $7 billion bailout.

Last year, Pakistan secured the IMF program with the help of China, UAE, and Saudi Arabia, who provided necessary financing assurances for IMF disbursements.

Earlier, the State Bank also reported a $30 million weekly increase in foreign exchange reserves, reaching $11.72 billion as of January 10, 2025.

Total liquid reserves were $16.45 billion, with commercial banks holding $4.73 billion.