Pakistan is expected to face heightened external financing pressure in April 2026 as a heavy foreign debt repayment schedule threatens to significantly reduce the country’s US dollar reserves held by the State Bank of Pakistan (SBP).
According to official estimates, Pakistan is required to repay approximately $5.3 billion in external obligations during April alone. This amount represents nearly one-third of the SBP’s current US dollar reserves, making it one of the most substantial monthly outflows in recent years.
The repayment schedule outlines several major payments throughout the month. On April 8, a $1.3 billion Eurobond is due, followed by nearly $2 billion to the United Arab Emirates on April 11. Additional repayments of $1 billion each are scheduled for April 17 and April 23, also to the UAE. Altogether, these payments are expected to create a significant drain on the country’s foreign exchange holdings.
At present, the SBP’s foreign exchange reserves stand at around $16.38 billion, meaning the upcoming repayments will consume a considerable portion of available liquidity. This situation highlights the growing pressure on Pakistan’s external account and its reliance on maintaining stable reserve levels.
Despite this looming challenge, the central bank’s most recent weekly report showed only a slight improvement in reserves. As of late March, total liquid foreign reserves were recorded at approximately $21.79 billion, including holdings by both the SBP and commercial banks.
Experts warn that the sharp decline in US dollar reserves could impact currency stability and increase financial vulnerability unless offset by fresh inflows, rollovers, or external financial support in the coming weeks.
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