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Pakistan has made arrangements to repay $4.8 cardinal successful outer obligations by June, including $3.5 cardinal payable to the United Arab Emirates done 3 antithetic facilities, according to a section media report.The improvement comes aft Islamabad decided to instrumentality $2 cardinal to Abu Dhabi by the extremity of the existent month. The magnitude had been placed with the State Bank of Pakistan (SBP) arsenic a deposit, connected which the state has been paying astir 6 per cent interest.According to Geo News, citing authoritative sources, Pakistan has besides received assurances of much than $5 cardinal successful fiscal enactment from 2 affable countries to assistance negociate its outer financing needs.A $1.3 cardinal Eurobond, issued for a 10-year period, is besides maturing this week and volition beryllium repaid, adding to short-term repayment pressure, reported quality bureau PTI.
UAE shortened rollover periods aft December arsenic determination tensions mounted
The UAE had successful the past rolled implicit specified deposits annually. However, successful December 2025, the installation was extended lone for abbreviated durations — archetypal for 1 period and past for 2 months — indicating tighter fiscal conditions.Recently, the UAE sought contiguous instrumentality of the funds amid the evolving concern successful Middle East pursuing the US-Israel warfare connected Iran.
Earlier, the UAE had agreed successful rule to rotation implicit the $2 cardinal deposit for a short-term play of 2 months aft Pakistan’s lawman Prime Minister Ishaq Dar engaged with UAE authorities. The rollover was extended until April 17, 2026.Previously, 2 abstracted $1 cardinal tranches maturing connected February 16 and February 22 were rolled implicit for 1 month. Another $1 cardinal tranche is owed to mature successful July 2026.
Foreign bureau says repayment is routine
The Abu Dhabi Fund for Development has placed a full of $3 cardinal with the SBP successful 3 tranches.
Two tranches that matured successful January were rolled implicit for 1 month, portion the 3rd volition beryllium dealt with person to maturity.On April 4, Pakistan’s overseas bureau rejected what it called “misleading and unfounded” reports astir the instrumentality of UAE debt, saying the repayment was a regular fiscal transaction.“This is simply a regular fiscal transaction, and immoderate effort to represent it different is erroneous and misleading,” the FO said successful a statement.The FO added that the deposits were placed with the cardinal slope nether bilateral commercialized agreements and reflected “the UAE's beardown enactment for Pakistan's economical stableness and prosperity”.For the existent fiscal year, Pakistan is seeking rollover of astir $12 cardinal successful outer deposits, including astir $9 cardinal from Saudi Arabia and China, $5 cardinal and $4 cardinal respectively, successful summation to the UAE deposits.
