Pakistan is preparing to repay another $1 billion to the United Arab Emirates as part of its external financial obligations. The repayment is part of ongoing settlements of previously received deposits.
Officials said this latest payment follows earlier repayments of around $2 billion to the UAE. This brings total repayments to nearly $3 billion in recent weeks. These funds were originally received in 2018. An additional $1 billion was borrowed in 2023.
The repayment is part of a larger $3.5 billion external obligation due this month. This has increased pressure on Pakistan’s external account and foreign exchange reserves.
Despite these repayments, officials say the impact remains manageable. They stated that timely financial support from friendly countries has helped stabilize the situation.
Recently, Pakistan received $3 billion from Saudi Arabia. These fresh deposits have supported the country’s foreign exchange reserves. They also helped reduce short-term pressure on external payments.
The financial assistance from Saudi Arabia is part of a broader support package. It is aimed at helping Pakistan meet its external obligations. It also supports stability under the ongoing International Monetary Fund program.
Pakistan’s foreign exchange reserves have remained under pressure in recent months. By late March, reserves were estimated at around $16 billion. A significant portion has been used for debt repayments, including payments to the UAE.
Officials described these repayments as routine under bilateral agreements. However, they acknowledged that timing reflects wider economic challenges.
These challenges include global oil price changes, regional tensions, and IMF program conditions. All of these factors continue to affect Pakistan’s external financial position.
The government said it is working to maintain stability in external accounts. It is also focusing on ensuring timely repayments while protecting reserve levels.
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Overall, the situation highlights ongoing financial adjustments in Pakistan. The country continues to manage external debt while relying on support from partner nations to maintain economic stability.
