Pakistan to repay $4.8bn in external obligations, UAE payments part of plan: sources

• Pakistan secures over $5bn external inflows: sources.
• Assurances received from two friendly countries: sources.
• For current fiscal year, Pakistan seeks rollover of around $12bn.

Pakistan has made arrangements to repay $4.8 billion in external obligations by June, including $3.5 billion payable to the United Arab Emirates (UAE) through three different facilities, official sources told Geo News on Monday.

The development comes after the federal government decided to return $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% interest.

According to the sources, Islamabad also received assurances of more than $5 billion in financial support from two friendly countries to help manage its external financing requirements.

The sources added that a $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.

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 sources said the UAE recently sought the immediate return of the funds amid the evolving situation in the Middle East following the US-Israel war on Iran.

Earlier, the UAE had agreed in principle to roll over the $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, $1 billion each maturing on February 16 and February 22 had been rolled over for one month. Another tranche of $1 billion is due to mature in July 2026.

Officials said the Abu Dhabi Fund for Development has placed a total of $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.

Meanwhile, 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 the matured deposits to the UAE pursuant to 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 $12 billion in external deposits, including approximately $9 billion from Saudi Arabia and China — $5 billion and $4 billion respectively — in addition to the UAE deposits.