Pakistan has committed to repaying its full $3.5 billion debt to the United Arab Emirates by the end of April, one of the largest external repayment schedules of the month, according to official sources.
The repayment plan is set in three tranches: $450 million this week, $2 billion on April 17, and $1 billion on April 23. The debt includes a legacy loan dating back to 1996–97, which is being fully cleared after nearly three decades, alongside $2 billion borrowed in 2018 and a $1 billion deposit from 2023. The loans were previously rolled over at an annual interest rate of 6.5 percent.
The repayment comes on top of a €1.3 billion Eurobond obligation due this month, bringing Pakistan’s total external debt service for April to nearly $4.8 billion.
Analysts say the country’s foreign exchange reserves, currently around $16.4 billion, are sufficient to meet the obligations.
However, the repayments are likely to be closely monitored by markets, as they could temporarily reduce reserve buffers while Pakistan manages high oil import costs, Eurobond payments, and upcoming IMF-related financing needs.
