Pakistan has successfully repaid $2 billion to the UAE, utilizing fresh financing from Saudi Arabia, which has allowed the country to manage its foreign exchange reserves effectively. The government is set to clear an additional $1 billion liability to the UAE through another Saudi loan tranche. This restructuring comes in response to a sudden repayment demand that created a $3.5 billion financing gap, prompting the government to secure alternative funding to comply with commitments under the $7 billion IMF program. As of now, Pakistan's foreign exchange reserves are approximately $15 billion, bolstered by Saudi Arabia's extended financial support.
BUSINESSPublished 17 Apr 2026 • Published 1 day ago • Updated 23h ago
Pakistan Repays $2 Billion to UAE with Saudi Financing Support
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Pakistan has restructured its external obligations, repaying $2 billion to the UAE using new loans from Saudi Arabia. This move, alongside a finalized IMF staff-level agreement, aims to stabilize the economy and maintain foreign exchange reserves, which currently stand around $15 billion.
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