The United Arab Emirates has agreed to temporarily extend $2 billion in loans to Pakistan for one month, providing short-term relief to the country’s foreign exchange reserves as negotiations continue for a longer rollover arrangement. According to officials, the amount includes two separate $1 billion loans that matured in mid and late January and have now been extended to allow more time for discussions on the duration and cost of a long-term extension. Pakistan is seeking a two-year rollover at a lower interest rate, while sources say Islamabad is preparing another formal request to the UAE, warning that repayment instead of rollover could create a financing gap. The development comes under Pakistan’s $7 billion IMF programme, under which the UAE, Saudi Arabia and China have committed to maintaining $12.5 billion in deposits with the State Bank of Pakistan until the programme ends in September next year.