Pakistan is preparing to repay the remaining USD 1.5 billion of a loan taken from the United Arab Emirates by April 23, according to its central bank. The move comes as part of efforts to manage external debt and maintain financial stability. Officials confirmed that Pakistan has already repaid USD 2 billion out of the total USD 3.5 billion support extended by the UAE. The repayment was made after the funds reached maturity.
This repayment was made possible after financial support from Saudi Arabia, which recently deposited USD 2 billion with Pakistanโs central bank as part of a larger assistance package.
IMF support expected to ease pressure
Pakistan is now looking towards the International Monetary Fund for further relief. Finance officials have indicated that a USD 1.2 billion tranche is expected soon under an ongoing agreement. The IMF board is likely to review Pakistanโs case in mid-May, and approval could unlock much-needed funds to support the countryโs fragile economy.
Reserves remain stable for now
Despite heavy repayments, officials said Pakistanโs foreign exchange reserves have remained stable due to timely inflows from friendly countries and international institutions. The government is trying to balance repayments while ensuring enough reserves to manage imports and currency stability.
Reports suggest that the UAE sought early repayment of its funds amid rising tensions in West Asia, particularly due to the ongoing conflict involving the United States and Iran. This has added urgency to Pakistanโs repayment schedule.
With multiple financial commitments and external pressures, Pakistan is walking a tightrope. The coming weeks, especially with the IMF decision pending, will be crucial in determining how smoothly the country manages its economic challenges.
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