Pakistan has finalized arrangements to repay $4.8 billion in external debt by June, including $3.5 billion owed to the United Arab Emirates, officials told Geo News.
The federal government is set to return $2 billion to Abu Dhabi by the end of April. These funds had been held as deposits with the State Bank of Pakistan (SBP), earning about 6% interest.
Sources said Pakistan also secured assurances of more than $5 billion in financial support from two friendly countries, aimed at easing the pressure on its external financing.
A $1.3 billion Eurobond, issued for 10 years, also matures this week and will be repaid, adding to short-term liquidity pressures.
Previously, the UAE had rolled over similar deposits annually. But since December 2025, extensions were granted only in short durations amid tightening global financial conditions and regional instability following the US-Israel conflict with Iran.
The Foreign Office clarified that the repayment of UAE deposits is a routine financial transaction under bilateral agreements. “These funds reflect the UAE’s strong support for Pakistan’s economic stability. Any attempt to portray it otherwise is misleading,” the FO said.
For the current fiscal year, Pakistan aims to roll over around $12 billion in external deposits, including roughly $9 billion from Saudi Arabia and China, alongside the UAE repayments.
