By S.M. Inam
KARACHI: The government has made arrangements to repay $4.8 billion in external obligations by June, including $3.5 billion payable to the United Arab Emirates (UAE) through three different facilities, official sources told Metro Morning on Monday.
The development comes after the federal government decided to return $2 billion to Abu Dhabi by the end of the current month. The amount had been placed with the State Bank of Pakistan (SBP) as a deposit, on which the country has been paying around 6 percent interest.
According to the sources, Islamabad also received assurances of more than $5 billion in financial support from two friendly countries to help manage its external financing requirements. The sources added that a $1.3 billion Eurobond, issued for a 10-year period, is maturing this week and will be repaid accordingly, adding to near-term repayment pressures.
However, in December 2025, the facility was extended only for short durations — initially for one month and then for two months — reflecting tightening financial conditions. The sources said the UAE recently sought the immediate return of the funds amid the evolving situation in the Middle East following the US-Israel war on Iran.
The FO clarified that the government, through the SBP, was returning the matured deposits to the UAE pursuant to mutually agreed terms. For the current fiscal year, Pakistan is seeking rollover of around $12 billion in external deposits, including approximately $9 billion from Saudi Arabia and China — $5 billion and $4 billion respectively.
