Pakistan 'upbeat' on rollover of $2bn UAE deposit

ISLAMABAD: Pakistani authorities are hopeful that the United Arab Emirates (UAE) will roll over deposits worth $2 billion, sources told Geo News on Monday. People familiar with the matter told Geo News that caretaker Prime Minster Anwaar ul Haq Kakar has written a letter to UAE President Mohamed bin Zayed Al Nahyan for the rollover.

Two separate deposits will mature during the ongoing month, the sources said, one on January 17 and the other on January 20. They added that the loans were taken on 3% and 6.5% interest. The total amount of loans that the oil rich Gulf state has deposited with the State Bank of Pakistan (SBP) is $3 billion, the sources noted.

"Hopefully, the UAE will soon roll over the $2 billion deposits. The Prime Minister's Office and the Ministry of Finance are working on the issue," the sources added. The foreign exchange reserves held by the central bank were recorded at a more than five month high of $8.221 billion as of December 29, with the government hopeful of a further boost after a loan approval from the International Monetary Fund (IMF).

The IMF has also confirmed its Executive Board would consider Pakistan’s request for completion of the first review and release of the second tranche worth $700 million on January 11 in Washington..