Pakistan has made arrangements to repay USD 4.8 billion in external obligations by June, including USD 3.5 billion payable to the UAE through three different facilities, a local media report said.
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The development comes after the federal government decided to return USD 2 billion to Abu Dhabi by the end of the current month. The amount had been placed with the State Bank of Pakistan (SBP) as a deposit, on which the country has been paying around 6 per cent interest.
Islamabad also received assurances of more than USD 5 billion in financial support from two friendly countries to help manage its external financing requirements, Geo News reported, citing sources.
A USD 1.3 billion Eurobond, issued for a 10-year period, is maturing this week and will be repaid accordingly, adding to near-term repayment pressures, it said. In the past, the UAE had rolled over such deposits annually. However, in December 2025, the facility was extended only for short durations — initially for one month and then for two months — reflecting tightening financial conditions.
The UAE recently sought the immediate return of the funds amid the evolving situation in West Asia following the US-Israel war on Iran, sources said. Earlier, the UAE had agreed in principle to roll over the USD 2 billion deposit for a short-term period of two months after Deputy Prime Minister Ishaq Dar engaged with the UAE authorities. The rollover was extended until April 17, 2026.
Previously, USD 1 billion each maturing on February 16 and February 22 had been rolled over for one month. Another tranche of USD 1 billion is due to mature in July 2026.
The Abu Dhabi Fund for Development has placed a total of USD 3 billion with the SBP in three tranches. Two tranches that matured in January were rolled over for a month, while the third will be addressed closer to its maturity, the report said.
The Foreign Office, on April 4, rejected “misleading and unfounded” reports concerning the return of UAE debt, saying the repayment is a routine financial transaction.
The FO said the funds were placed with the central bank under bilateral commercial agreements. The deposits demonstrated “the UAE’s strong support for Pakistan’s economic stability and prosperity”, it said in a statement.
The FO clarified that the government, through the SBP, was returning matured deposits to the UAE in accordance with mutually agreed terms.
“This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading,” it said.
For the current fiscal year, Pakistan is seeking rollover of around USD 12 billion in external deposits, including approximately USD 9 billion from Saudi Arabia and China — USD 5 billion and USD 4 billion respectively — in addition to the UAE deposits.
