Pakistan Targets Full Repayment of UAE Loan by April 23 Amid IMF Inflows
Pakistan has announced its intention to repay the outstanding $1.5 billion of a total $3.5 billion loan from the United Arab Emirates by April 23, 2024. This development comes as the country anticipates a significant $1.2 billion disbursement from the International Monetary Fund, following recent high-level discussions in Washington, D.C.
Central Bank Confirms Repayment Schedule and Financial Inflows
A spokesperson for the State Bank of Pakistan, the nation's central bank, provided detailed insights into the repayment process. "Pakistan has already repaid $2 billion of the $3.5 billion fund placed by the UAE with the State Administration of Foreign Exchange deposit at the central bank," the official stated. "The $2 billion was transferred to the UAE upon maturity of the deposits. The remaining $1.5 billion is scheduled for payment by April 23."
In a parallel move to bolster its financial stability, the Saudi Fund for Development recently deposited $2 billion of a $3 billion support package with the State Bank of Pakistan. The central bank spokesperson emphasized that Pakistan's foreign exchange reserves have remained steady due to continuous inflows into the financial system, highlighting the importance of these international partnerships.
IMF Disbursement and Regional Financial Dynamics
Pakistan's Finance Minister, Muhammad Aurangzeb, confirmed in Washington that the country expects a $1.2 billion release under the Staff Level Agreement reached with the IMF after recent negotiations. "The IMF Executive Board is expected to meet in mid-May in Washington to review the agreement, which would authorize the next tranche under the programme," he noted.
The UAE initially extended the $3.5 billion loan to support Pakistan's balance of payments, with the arrangement being rolled over periodically. However, reports earlier this month indicated that the UAE sought immediate repayment following regional developments in the Middle East, including joint U.S.-Israel strikes on Iran.
Extended Support from Saudi Arabia and Interest Details
Saudi Arabia has also stepped up to assist Pakistan's external financing needs. The Saudi Fund for Development signed an agreement with the State Bank of Pakistan to extend the maturity of a $3 billion deposit. On Thursday, $2 billion of this total was deposited with the central bank, providing additional reinforcement to Pakistan's reserves.
Officials revealed that Pakistan has been paying approximately 6 percent interest on the UAE-linked funds. The deposit arrangements were traditionally rolled over annually, but in December 2025, the term was initially extended for one month and then for two months until April 17, reflecting the evolving financial landscape.
Pakistan's Broader External Financing Requirements
For the current fiscal year, Pakistan requires around $12 billion in external deposit rollovers to manage its financial obligations. This includes:
- $5 billion from Saudi Arabia
- $4 billion from China
- $3 billion from the UAE
According to official figures, Pakistan's foreign exchange reserves stood at $16.4 billion as of March 27, 2024. Authorities assert that this level is sufficient to cover nearly three months of imports, providing a buffer as the country navigates pressures on its external financial position. The latest repayment to the UAE is part of ongoing efforts to maintain economic stability and foster international confidence.
