Pakistan repays $2 billion to UAE amid ongoing external financing pressures
Pakistan has repaid $2 billion to the United Arab Emirates under maturing bilateral deposits, as the country navigates external financing pressures and debt obligations, a central bank official said on Saturday.
The repayment forms part of a broader $3.5 billion due to the UAE by the end of April, as authorities work to stabilize foreign exchange reserves with support from allied countries and an International Monetary Fund (IMF) program.
The outflow comes at a time when Pakistan’s reserves remain under pressure. As of March 27, foreign exchange reserves stood at $16.4 billion, covering roughly three months of imports. The repayment coincided with $1.4 billion in Eurobond obligations during the same period, highlighting ongoing strain on the country’s balance of payments.
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Muhammad Ali Bandial