UAE extends $2bn loan to Pakistan amid IMF review

February 13, 2026 (MLN): The United Arab Emirates (UAE) has agreed to extend the rollover of a $2 billion loan to Pakistan for an additional two months, offering crucial short-term financial relief as Islamabad prepares to complete a key economic review with the International Monetary Fund (IMF).

According to Finance Ministry, the UAE has approved the extension of the loan until April 16 and April 22, respectively.

The facility had earlier been extended for one month, with previous maturities set for February 16 and February 22.

Initially, Pakistan had requested a two-year rollover of the $2bn loan.

Following this request, the government sought a temporary extension to safeguard its foreign exchange reserves and ensure smooth completion of the IMF’s economic assessment.

Officials highlighted that finalizing the rollover will bolster Pakistan’s position ahead of the IMF review.

Once the review is successfully concluded, Islamabad plans to negotiate with the UAE for a longer-term extension of the loan.

This move underscores Pakistan’s ongoing reliance on financial support from friendly nations, including the UAE, to stabilize foreign exchange reserves and meet external financing obligations under its IMF program.

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