ISLAMABAD: The government said on Friday that it expects rollover of US$ 1 billion by the United Arab Emirates (UAE). A finance ministry official on condition of anonymity confirmed to Business Recorder that the return of the amount to the UAE was due on 12 March, 2021.

“Pakistan and the UAE are great friends and we are confident of a rollover,” said the official.

On 21 December 2018 during the visit of Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed bin Sultan Al Nahyan to Islamabad the UAE pledged to deposit US $ 3 billion in the State Bank of Pakistan "to support the financial and monetary policy of the country" – however to-date $2 billion was deposited.

The International Monetary Fund’s (IMF’s) Extended Fund Facility programme documents noted that “Pakistan has already secured the full financing for the first year and have received firm commitments from key bilateral partners to maintain their exposure throughout the programme period, including by extending loans consistent with programme objectives.” Pakistan returned $ 1 billion to Saudi Arabia on 16 December 2020 and another $ one billion payment was due on 24 January 2021; however, there are no reports that the amount was asked for or returned. Pakistan was successful in getting China to meet the shortfall through a currency swap (debt) to meet the IMF programme condition. An official of SBP said that he has requested the relevant department for the information and as soon as he gets a response he would share the update.

Copyright Business Recorder, 2021