Pak says it will repay remaining $1.5 bn loan to UAE by April 23 amid IMF funding hopes

Official figures show Pakistan requires roughly $12 billion in external deposit rollovers for the current fiscal year: about $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.

The UAE had previously extended $3.5 billion to support Pakistan’s balance of payments; the arrangement had been rolled over until recently, with external financing needs distributed across Saudi Arabia, China, and the UAE.

Reports earlier this month suggested the UAE sought immediate repayment of funds following regional developments after US-Israel strikes on Iran.

Finance Minister Muhammad Aurangzeb said a $1.2 billion release under the IMF Staff Level Agreement is expected; the IMF Executive Board is expected to meet in mid-May in Washington to review the agreement and release the next tranche.

Pakistan expressed hopes to repay the remaining $1.5 billion of the UAE loan by April 23, part of a $3.5 billion UAE support arrangement for its balance of payments.

The Saudi Fund for Development deposited $2 billion with the State Bank of Pakistan and signed an agreement extending the maturity of a $3 billion deposit. Officials note Pakistan had been paying around 6% interest on UAE-linked funds.

Officials stated the $16.4 billion reserves were sufficient to cover nearly three months of imports, underscoring the ongoing financial position.

Official figures show Pakistan's foreign exchange reserves at $16.4 billion as of March 27, 2026, deemed sufficient to cover nearly three months of imports.

Deposit arrangements were previously rolled over yearly; in December 2025, the term was extended first for one month and then for two months until April 17, 2026.