Pakistan is in talks with China and Saudi Arabia to secure fresh financial support worth more than $3.5 billion as it prepares to manage the repayment of a loan to the United Arab Emirates, according to people familiar with the matter.

Sources said the discussions involve a combination of deposits, loans and investment inflows aimed at strengthening Pakistan’s external financing position and stabilising foreign exchange reserves during the repayment period. The total package being negotiated is estimated to exceed $3.5 billion, though final figures may change as talks continue.

The development comes amid renewed pressure on Pakistan’s external accounts, as the country works to balance debt obligations, import needs and reserve stability.

Earlier reporting by ProPakistani indicated that the UAE had sought repayment of around $3 billion in financial support previously placed with Pakistan’s central bank. These deposits had been part of short-term liquidity assistance extended during periods of external financing stress.

Over the past few years, Gulf allies — particularly the UAE and Saudi Arabia — have repeatedly provided deposits and rollover facilities to help Pakistan avoid sharp pressure on its foreign exchange reserves. However, such arrangements are typically time-bound, requiring renewal or repayment, which has kept Pakistan under recurring external financing pressure.

Officials say Islamabad is now attempting to replace the outgoing UAE funds with new inflows from friendly countries to ensure continuity in reserves and avoid volatility in the currency market.

China is expected to remain a key contributor through loan rollovers and bilateral financial support, while Saudi Arabia is also being engaged for additional deposits and investment-based assistance under broader economic cooperation frameworks.

The ongoing negotiations highlight Pakistan’s continued reliance on partner countries to bridge external financing gaps as it manages debt repayments and maintains economic stability.