The United Arab Emirates (UAE) has rolled over Pakistan’s $2 billion debt for a period of one month, sources said on Tuesday.

The UAE rolled over two loans of $1 billion each, which matured on January 16 and 22, the sources stated.

The sources added said that roll over was granted to allow time for further discussions on the tenor and interest rate.

Pakistan had initially requested a one-year rollover.

According to officials, the extension would provide temporary relief in debt repayment and help stabilise the country’s financial situation.

The Ministry of Finance confirmed that the UAE has $3 billion deposited with the State Bank of Pakistan as a “safe deposit,” which could be utilised for future financial measures.

Sources added that Pakistan has assured the International Monetary Fund (IMF) of its plans to roll over the debt programme, while the interest rate on the UAE loan is expected to remain above 6.5 per cent.

Earlier, Saudi Arabia had extended a $3 billion loan for one year last month. Pakistan is targeting a total rollover of $12 billion in loans during the current fiscal year.

Officials from the Prime Minister’s Office and the Ministry of Finance are reportedly in continuous talks with UAE representatives to ensure the timely and effective fulfilment of the country’s financial obligations.