‘Pak to repay $4.8 bn in external obligations by June’

Islamabad: Pakistan has made arrangements to repay $4.8 billion in external obligations by June, including $3.5 billion payable to the UAE through three different facilities, a local media report said.

The development comes after the federal government decided to return $2 billion to Abu Dhabi by the end of the current month.

The amount had been placed with the State Bank of Pakistan (SBP) as a deposit, on which the country has been paying around 6 per cent interest.

Islamabad also received assurances of more than $5 billion in financial support from two friendly countries to help manage its external financing requirements, Geo News reported on Monday, citing sources. A $1.3 billion Eurobond, issued for a 10-year period, is maturing this week and will be repaid accordingly, adding to near-term repayment pressures, it said.

In the past, the UAE had rolled over such deposits annually. However, in December 2025, the facility was extended only for short durations — initially for one month and then for two months — reflecting tightening financial conditions.

The UAE recently sought the immediate return of the funds amid the evolving situation in West Asia following the US-Israel war on Iran, sources said.

Earlier, the UAE had agreed in principle to roll over the $2 billion deposit for a short-term period of two months after Deputy Prime Minister Ishaq Dar engaged with the UAE authorities. The rollover was extended until April 17, 2026.

Previously, $1 billion each maturing on February 16 and February 22 had been rolled over for one month. Another tranche of $1 billion is due to mature in July 2026.

The Abu Dhabi Fund for Development has placed a total of $3 billion with the SBP in three tranches. Two tranches that matured in January were rolled over for a month, while the third will be addressed closer to its maturity, the report said.