The Government of Pakistan is preparing to repay two major external loans totaling $3.5 billion during the current month, with financial arrangements being finalized to meet these obligations.
According to details, the government has decided to repay $2 billion in deposits to the United Arab Emirates on April 17 along with 6 percent interest, while an additional $1.3 billion will be paid on April 8, 2026, upon the maturity of Eurobonds. In total, Pakistan will have to make payments of $3.5 billion, including both principal and profit, while another $1 billion in UAE deposits will become due in July 2026.
Official sources indicate that Pakistan may prefer to repay the full amount of $3 billion in one go. The government had earlier attempted to persuade the United Arab Emirates to extend the maturity period, but due to the changing geopolitical situation, repayment is now being prioritized.
Sources further stated that Islamabad is making efforts to secure interim financial support, also known as bridge financing, from friendly countries, but no final progress has been achieved so far. A federal minister under the leadership of Prime Minister Shehbaz Sharif confirmed on Friday evening that the government is fully prepared to repay the UAE deposits on the scheduled dates.
It is worth noting that in February 2026, it was reported that the United Arab Emirates had given in-principle approval for a two-month extension on the $2 billion deposits, setting a new deadline of April 17, 2026. However, the government has now decided to repay the amount along with interest.
Earlier, the UAE had rolled over the $2 billion deposits for only one month, with $1 billion maturing on February 16 and the remaining $1 billion on February 22. The Pakistani government had initially requested a two-year extension and later submitted another request seeking further time.
