Pakistan expressed its hope to repay the remaining $1.5 billion of the total $3.5 billion loan to the UAE by April 23. This comes before an expected disbursement of $1.2 billion from the International Monetary Fund, following recent discussions in Washington.A spokesman for the State Bank of Pakistan, the country’s central bank, told PTI: “Pakistan has repaid $2 billion from a $3.5 billion fund placed by the UAE on the deposit of the State Administration of Foreign Exchange (SAFE) with the central bank.”He said, “An amount of $2 billion was transferred to the UAE after deposits at the State Bank matured. The remaining amount must be paid by April 23.”Earlier this week, the Saudi Fund for Development deposited $2 billion of its $3 billion support with the State Bank of Pakistan.The central bank spokesman added that Pakistan’s foreign exchange reserves remained stable due to continuous inflows into the financial system.Meanwhile, in a separate update, Pakistani Finance Minister Muhammad Aurangzeb said in Washington that the country expects to release $1.2 billion under the Staff Level Agreement (SLA) reached with the International Monetary Fund after recent negotiations in the US capital.
He added that the Executive Board of the International Monetary Fund is expected to meet in mid-May in Washington to review the agreement that will lead to the payment of the next tranche under the program.The UAE had previously provided $3.5 billion to support Pakistan’s balance of payments, with the arrangement extended until recently. However, reports earlier this month indicated that the UAE sought immediate repayment of the funds following regional developments in the Middle East after the US and Israel launched joint strikes on Iran.In parallel, Saudi Arabia has also moved to support Pakistan’s external financing needs. The Saudi Fund for Development signed an agreement with the Central Bank of Sudan allowing the extension of the maturity of a deposit worth $3 billion. On Thursday, it deposited $2 billion of this total amount with the central bank, providing additional support to Pakistan’s reserves.“The agreement signed between the Saudi Fund for Development (SFD) and the State Bank of Pakistan (SBP) provides for an extension of the maturity period of a $3 billion deposit placed by the Social Fund for Development with the State Bank of Pakistan,” said a post on X website by the Ministry of Finance.Officials said Pakistan pays about 6% interest on funds linked to the UAE. The deposit arrangements were previously renewed on an annual basis, but in December 2025, the term was extended first by one month and then by two months until 17 April.Pending bills in PakistanIn the current fiscal year, Pakistan needs nearly $12 billion in external deposits, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the United Arab Emirates.According to official figures, Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, a level that authorities said was enough to cover nearly three months of imports. The latest payment to the UAE comes as the country continues to manage pressure on its external financial position.
