The State Bank of Pakistan (SBP) announced on Thursday that the United Arab Emirates (UAE) has confirmed the rollover of two $1 billion deposits placed with Pakistan. The deposits, set to mature in January 2025, have now been extended for an additional year.

The central bank confirmed the development in a brief statement, providing much-needed relief to Pakistan as it navigates its external debt obligations. Earlier this month, Prime Minister Shehbaz Sharif informed the federal cabinet about the UAE’s decision to extend the $2 billion debt, which was due for repayment.

Pakistan faces external debt obligations totaling $26.2 billion for the fiscal year 2025. Of this amount, $12.3 billion is expected to be rolled over, including the UAE deposits. The rollover provides temporary relief to Pakistan’s foreign exchange reserves, which remain under pressure due to the country’s ongoing economic challenges.