Pakistan to Repay Another $1 Billion to UAE

ISLAMABAD: (Web Desk)-  Pakistan is set to repay another $1 billion to the United Arab Emirates in remaining external liabilities.

The latest payment follows earlier repayments of around $2 billion to the UAE, bringing total repayments to nearly $3 billion in recent weeks. The deposits were originally taken in 2018 and supplemented with an additional $1 billion borrowing in 2023.

The repayments are part of a larger $3.5 billion obligation due this month, which has placed significant pressure on Pakistan’s external account and reserve position.

Despite the outflows, officials say the impact on reserves will remain manageable due to timely financial support from allied countries. Pakistan has recently received $3 billion from Saudi Arabia in fresh deposits, helping stabilize the country’s foreign exchange reserves.

The Saudi inflows are part of a broader financial support package aimed at helping Pakistan meet its external obligations and maintain stability under its International Monetary Fund program.

Pakistan’s foreign exchange reserves have remained under pressure in recent months, standing near $16 billion in late March, with repayments to the UAE alone accounting for a significant portion of these holdings.

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The government has described the repayments as routine under bilateral agreements, although the timing reflects broader challenges linked to global oil price volatility, regional geopolitical tensions, and IMF program requirements.