The federal government is set to seek the rollover of $3 billion in deposits from the United Arab Emirates (UAE), official sources said on Tuesday.
According to sources in the Ministry of Finance, Prime Minister Shehbaz Sharif will write to UAE President Sheikh Mohamed bin Zayed Al Nahyan to request the extension of three separate tranches, amounting to $3bn, before their respective maturity dates.
The sources said the ministry has completed the necessary groundwork and the prime minister is expected to approach the UAE authorities shortly for the rollover of the deposits.
The UAE has placed a total of $3bn with the State Bank of Pakistan to help support the country’s balance of payments position.
Officials said one tranche of $1bn is due to mature on January 17, another $1bn on January 23, while the third tranche of $1bn is scheduled to mature in July this year. The government will seek the rollover of all three deposits.
Sources added that Pakistan is currently paying interest ranging between 3pc and 6.5pc on the UAE deposits held by the central bank, and the rate could rise above 6.5pc upon renewal.
