Pakistan is set to repay the remaining $1.5 billion debt to the United Arab Emirates (UAE) by April 23, as part of a larger $3.5 billion loan obligation.
The repayment comes at a crucial time, with the country expecting a $1.2 billion tranche from the International Monetary Fund (IMF) following ongoing discussions.
Pakistan has already repaid a significant portion of the loan and is relying on financial support from allies, including Saudi Arabia, to meet its obligations.
However, the repayment is adding pressure on the country’s foreign exchange reserves, which are already under strain due to external debt commitments and global economic challenges.
The government is exploring various funding options, including loans, bonds, and bilateral support, to manage its external financing needs and stay on track with IMF targets.
This repayment is seen as a key step in maintaining Pakistan’s financial credibility and ensuring continued international support amid ongoing economic challenges.
