With its financial condition seriously deteriorating, Pakistan is struggling for options to replace the $3.5 billion facility from the UAE and stabilize its foreign exchange reserves. Pakistan Finance Minister Muhammad Aurangzeb has said that the country is considering multiple financing options, including issuing Eurobonds, securing bilateral loans and raising commercial debt.Pakistan is in talks with Saudi Arabia and China to secure financial assistance as it prepares to repay a nearly $3 billion loan to the UAE, sources told Bloomberg.The talks are said to cover both borrowing and potential investment. For the first time in seven years, Pakistan was unable to reach an understanding with the UAE to reduce the debt. As a result, Islamabad is set to repay the dues by the end of this month, a move that is expected to put considerable pressure on its foreign exchange reserves, currently estimated at around $16 billion, enough for about three months of imports.Speaking to Reuters, Aurangzeb said the ongoing conflict in the Middle East has underlined the need for Pakistan to build strategic petroleum reserves and accelerate its transition towards renewable energy.When asked if discussions were underway with Saudi Arabia for a loan in exchange for the UAE’s support, he said every option was under consideration.Finance Minister Muhammad Aurangzeb, speaking on the sidelines of the spring meetings of the IMF and World Bank, said Pakistan is capable of meeting its debt obligations, with foreign exchange reserves currently covering about 2.8 months of imports. He said maintaining this level is important to maintain overall macroeconomic stability in the times to come.He said the government is evaluating multiple financing routes, including Eurobonds, Islamic sukuk and dollar-settled, rupee-linked bonds. The issuance of Eurobonds is planned within the year, while options to raise funds through commercial borrowing are also being explored.Aurangzeb said that although Islamabad has not yet sought any modification or additional support under its $7 billion IMF program in response to the economic impact of the Middle East conflict, such a move is under consideration. “This is something that may be considered depending on how the situation evolves in the coming weeks,” he said.He indicated that the IMF board is expected to approve the next tranche of funding by the end of this month or early next month. Just under $1.3 billion will be released through the Extended Fund Facility and the Resilience and Stability Facility.Pakistan is also preparing to introduce its first Panda bond, a yuan-denominated debt instrument, next month. The initial issuance of $250 million is part of a broader $1 billion plan and will be supported by the Asian Development Bank and the Asian Infrastructure Investment Bank.Aurangzeb said projected GDP growth of around 4%, remittance inflow of around $41.5 billion and targeted support for the most vulnerable sections of the society will help the country absorb the economic impact of the Iran conflict during the current fiscal year ending June 30.However, he stressed that rising prices highlight the need to accelerate the transition to renewable energy as well as build strategic reserves of fuel and LPG rather than relying solely on commercial reserves.“When this kind of supply shock occurs, it clearly signals the urgency to move quickly on these fronts,” he said.