Pakistan has finalized arrangements to meet $4.8 billion in external debt repayments by June, including $3.5 billion owed to the United Arab Emirates.
The federal government plans to return $2 billion to Abu Dhabi by the end of April. These funds had been held as deposits with the State Bank of Pakistan (SBP) at a 6 percent interest rate.
The government had also received assurances of more than $5 billion from two allied countries to help meet its external financing needs.
In the past, the UAE had rolled over such deposits annually. But in December 2025, extensions were granted only in short durations, reflecting tightening global financial conditions and regional instability following the US-Israel conflict with Iran.
The government has so far maintained that returning the UAE deposits is a routine financial transaction under bilateral agreements. “The UAE’s deposits reflect strong support for Pakistan’s economic stability. Any attempt to portray this otherwise is misleading,” the FO said.
Meanwhile, a 10-year $1.3 billion Eurobond is maturing this week and will be repaid.
For the current fiscal year, Pakistan is also seeking rollovers of around $12 billion in external deposits, including approximately $9 billion from Saudi Arabia and China.
Let us correct the sentence not Pakistan; Pakistani awam has to pay from its pocket.