Pakistan has finalized arrangements to repay nearly $4.8 billion in external debt by June 2026, as the government moves to manage its financial obligations amid ongoing economic challenges.
According to officials, the country owes around $3.5 billion to the United Arab Emirates, with $2 billion set to be returned to Abu Dhabi by the end of April. These funds were previously held as deposits with the State Bank of Pakistan(SBP) at an interest rate of 6 percent.
The government has secured assurances of over $5 billion from allied countries to help meet its external financing requirements. Officials maintain that the repayment of UAE deposits is part of routine financial arrangements under bilateral agreements.
In the past, the UAE had rolled over such deposits annually. However, in December 2025, extensions were granted only for shorter periods, reflecting tighter global financial conditions and rising regional uncertainty linked to the broader Middle East conflict.
Pakistan is also set to repay a 10-year $1.3 billion Eurobond maturing this week, adding further pressure on the country’s foreign exchange reserves.
For the current fiscal year, Pakistan is seeking rollovers of approximately $12 billion in external deposits. This includes around $9 billion expected from key partners such as Saudi Arabia and China.
Officials stress that continued financial support from friendly countries remains critical for maintaining economic stability and meeting external obligations in the near term.
