Pakistan repays UAE’s USD2.4bn debt

KARACHI: Pakistan has successfully repaid USD 2.4 billion to the United Arab Emirates (UAE) against maturing deposits due this month, meeting its external debt obligations on schedule.

Sources privy to the development told Business Recorder on Saturday that the payments were made during the past week. In total, about USD 3.5 billion in deposits to the UAE were maturing this month.

The repayments were scheduled in tranches, including roughly USD 450 million on April 11, USD 2 billion on April 17, and USD 1 billion due on April 23.

Of the total, around USD 2.4 billion has already been repaid during the past week, while the remaining USD 1 billion is expected to be settled on April 23, 2026.

However, Noor Ahmed, Chief Spokesperson of the SBP, has confirmed the repayment of USD 2 billion. “Yes, we have made the USD 2 billion repayment to the UAE on maturity of deposits,” he said.

READ ALSO: Pakistan has repaid $2bn to UAE, confirms SBP official

Pakistan was scheduled to repay around USD 5 billion in external debt during April 2026, posing a significant financial test as these outflows account for nearly one-third of the SBP’s foreign exchange reserves. A major portion of these obligations includes the successful redemption of a USD 1.3 billion Eurobond on April 8, along with USD 3.5 billion in repayments to the UAE.

The heavy repayment burden comes at a time when Pakistan is striving to stabilise its external account. However, the government and its economic team have managed to secure timely inflows to shore up the country’s depleting foreign exchange reserves.

An amount of USD 2 billion has been received from Saudi Arabia, while another USD 500 million was raised through the issuance of a three-year Eurobond on Friday at competitive terms under the Global Medium-Term Note (GMTN) programme, aimed at strengthening reserves.

Saudi Arabia has committed a total of USD 3 billion, of which USD 2 billion was received this week, while the remaining USD 1 billion is expected next week, providing additional cushion for the repayment of the remaining UAE deposits.

During the week ended on April 10, 2026, SBP’s FX reserves decreased by USD 1.321 billion to USD 15.08 billion as SBP repaid USD1.426 billion against Pakistan Sovereign Eurobond. In February, SBP Governor Jameel Ahmed had projected that reserves would rise above USD 18 billion by June and reach an all-time high of USD 20.2 billion by December 2026.

Overall, despite sizeable external debt repayments, Pakistan’s external account remains stable, with foreign exchange reserves expected to face limited pressure, supported by inflows from Saudi Arabia and proceeds from the Eurobond issuance.

Pakistan’s current account has also improved and recorded a USD 1 billion surplus in March 2026, supported by the healthy home remittances and lower trade deficit.

Copyright Business Recorder, 2026