Pakistan is exploring fresh external financing options, including possible support from China and Saudi Arabia, as the country prepares to repay around $3.45 billion to the UAE this month.
According to a report by Business Recorder, the financing gap has widened further due to delays in the planned Panda bond issuance, tightening options at a sensitive time for the external account.
The repayment schedule includes $450 million during the current week, followed by $2 billion on April 17 and another $1 billion on April 23, taking total UAE-related outflows this month to nearly $3.45 billion.
Despite the heavy repayments, the State Bank of Pakistan said the country’s total liquid foreign reserves stood at $21.789 billion as of March 27, 2026, including $16.381 billion held by the central bank and $5.407 billion with commercial banks.
Officials maintained that the immediate position remains manageable, with reserves also expected to cover the upcoming $1.3 billion Eurobond repayment, although broader financing pressures persist.
According to the International Monetary Fund, Pakistan’s gross external financing requirement is projected at $19.398 billion for FY26, with key bilateral partners including China and Saudi Arabia expected to continue rollover support and fresh financing commitments.
The International Monetary Fund has stated that Pakistan’s programme remains fully financed, with firm commitments available for the next 12 months and positive prospects for the remainder of the Fund-supported programme.
The lender noted further progress in securing financing committed ahead of the EFF request, including support from the Saudi Development Fund and China EXIM. At the same time, major international financial institutions are also expected to provide more financing in FY26 than previously anticipated.
The IMF further said that key bilateral partners remain committed to rolling over existing short-term liabilities during the remaining programme period.
All of this could’ve been avoided had pakistan worked with Europe and China
Do not cry over spilt milk. This was to happen and has been happening for the last eighty years.
even after paying this amount the reserves are sufficient… the government should focus on exports and remove hurdles in the export sector