Pakistan expects to repay the remaining $1.5 billion of the total $3.5 billion loan to the UAE by April 23. This comes ahead of the expected $1.2 billion disbursement from the International Monetary Fund (IMF) following recent discussions in Washington.“Pakistan has repaid $2 billion of the $3.5 billion funds that the UAE had parked with the central bank with State Administration of Foreign Exchange (SAFE) deposits,” a spokesperson for the State Bank of Pakistan, the country’s central bank, told PTI.“An amount of $2 billion was transferred to the UAE after the maturity of deposits held by the State Bank. The remaining amount is to be paid by April 23,” he said.Earlier this week, the Saudi Fund for Development deposited $2 billion of its $3 billion support with the State Bank of Pakistan.The central bank spokesperson said Pakistan’s foreign exchange reserves remain stable due to ongoing inflows into the financial system.Meanwhile, in a separate update, Pakistan Finance Minister Muhammad Aurangzeb said in Washington that the country is expecting the release of $1.2 billion under the Staff Level Agreement (SLA) signed with the IMF after recent talks in the US capital. He said the IMF Executive Board is expected to meet in Washington in mid-May to review the agreement and approve the next tranche under the program.The UAE had earlier extended $3.5 billion to support Pakistan’s balance of payments position, an arrangement that had recently expired. However, reports earlier this month revealed that the UAE had demanded immediate repayment of the funds following regional developments in the Middle East after the US-Israel launched joint strikes on Iran.In parallel, Saudi Arabia has also stepped in to support Pakistan’s external financing needs. The Saudi Fund for Development has signed an agreement with the SBP, allowing it to extend the maturity period of its deposits by $3 billion. On Thursday, it deposited $2 billion of that total with the central bank, providing additional support to Pakistan’s reserves.“The agreement signed between the Saudi Fund for Development (SFD) and the State Bank of Pakistan (SBP) provides for extension in the maturity of $3 billion of deposits held by the SFD with the State Bank of Pakistan,” a post by the Finance Ministry on X said.Officials said Pakistan is paying about 6 percent interest on UAE-linked funds. The deposit arrangement was initially implemented on an annual basis, but in December 2025, the period was extended first for one month and then for two months till April 17.Pakistan’s pending billsFor the current fiscal year, Pakistan requires about $12 billion in external deposit rollover, which includes $5 billion from Saudi Arabia, $4 billion from China and $3 billion from the UAE.According to official data, Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, which officials said was enough to cover about three months of imports. The latest repayment to the UAE comes as the country continues to manage pressures on its external financial position.
