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Pakistan has decided to repay $2 billion to the United Arab Emirates (UAE) after arranging the required funds through alternative financial sources, according to government officials.
Read More: UAE ‘rolls over’ $2 billion loan for a month
Sources said the decision was made after Islamabad secured sufficient financing to meet its external payment obligations due in the coming months. Pakistan is expected to make total payments of around $4.8 billion by June, and officials claim that arrangements for these liabilities have already been completed.
The $2 billion payment to the UAE forms part of a broader repayment plan that includes multiple financial commitments. Government sources noted that Pakistan’s total obligations to the UAE amount to approximately $3.5 billion across three different financial arrangements.
In addition to this, Pakistan is also set to repay a maturing Eurobond worth $1.3 billion. The bond, issued for a 10-year period, has reached maturity and is scheduled to be repaid within the week. Officials emphasised that the government has made adequate preparations to ensure timely repayment, aiming to maintain financial credibility in international markets.
🔊PR No.9️⃣1️⃣/2️⃣0️⃣2️⃣6️⃣
Pakistan Rejects Misleading Commentary on UAE Financial Deposits, Reaffirms Strong Partnership with UAE pic.twitter.com/0RCfCEbmea
— Ministry of Foreign Affairs – Pakistan (@ForeignOfficePk) April 4, 2026
Sources further revealed that Pakistan has received assurances from two friendly countries for financial support exceeding $5 billion. These commitments have helped ease immediate liquidity pressures and enabled the government to proceed with repayments without destabilising its foreign exchange reserves.
The development comes at a time when Pakistan is navigating economic challenges, including external debt obligations and the need to stabilise its financial position. Analysts say timely repayments and continued support from allied nations are crucial for maintaining investor confidence and avoiding further economic strain.
Read More: Pakistan negotiates major UAE debt relief
Officials have not publicly disclosed the specific alternative funding sources but reiterated that all upcoming payments are expected to be met as scheduled.