Pakistan to Repay USD 3.5 Billion UAE Debt by April End Pakistan has decided to repay its entire USD 3.5 billion debt to the United Arab Emirates by the end of April after the Gulf nation sought immediate return of the funds. The decision, confirmed by a senior cabinet minister, reflects changing financial dynamics amid rising geopolitical tensions in West Asia.
The development comes in the backdrop of the ongoing US–Israel–Iran conflict, which has influenced the UAE’s move to recall its loans. Pakistan has finalized a repayment schedule, with USD 450 million to be paid on April 11, followed by USD 2 billion on April 17 and USD 1 billion on April 23.Officials indicated that the repayments may be made using the country’s foreign exchange reserves, currently estimated at USD 16.4 billion. At the same time, discussions are underway regarding the possibility of converting a portion of the outstanding debt into investment.The move is also linked to Pakistan’s commitments under its programme with the International Monetary Fund, under which friendly nations have pledged financial support. In total, Pakistan is expected to repay around USD 4.8 billion in April, including other obligations.Despite the significant outflows, officials maintain that the country’s reserves remain at manageable levels, even as economic challenges such as declining exports and weak foreign investment continue to pose risks.
