Pakistan says it will repay remaining $1.5 billion loan to UAE by April 23 amid IMF funding hopes

Pakistan has expressed hopes to repay the remaining $1.5 billion of the total $3.5 billion loan to UAE by April 23. This comes ahead of an expected $1.2 billion disbursement from the International Monetary Fund (IMF), following recent discussions in Washington.Spokesperson for the State Bank of Pakistan, country’s central bank told PTI, “Pakistan has repaid $2 billion of a $3.5 billion fund, which was placed by the United Arab Emirates with the State Administration of Foreign Exchange (SAFE) deposit with the central bank.”“The amount of $2 billion was transferred to the UAE following the maturity of deposits held by the State Bank. The remaining amount has to be paid by April 23,” he said.Earlier this week, the Saudi Fund for Development deposited $2 billion of its $3 billion support with the State Bank of Pakistan.The central bank spokesperson added that Pakistan’s foreign exchange reserves had remained steady due to ongoing inflows into the financial system.Meanwhile, in a separate update, Pakistan’s finance minister Muhammad Aurangzeb said in Washington that the country is anticipating a $1.2 billion release under the Staff Level Agreement (SLA) reached with the IMF after recent negotiations in the US capital. He said the IMF Executive Board is expected to meet in mid-May in Washington to review the agreement, which would clear the next tranche under the programme.The UAE had earlier extended $3.5 billion to support Pakistan’s balance of payments position, with the arrangement rolled over until recently. However, reports earlier this month suggested the UAE sought immediate repayment of funds following regional developments in the Middle East after the US-Israel launched joint strikes on Iran.In parallel, Saudi Arabia has also moved to support Pakistan’s external financing needs. The Saudi Fund for Development has signed an agreement with the SBP allowing an extension in the maturity of a $3 billion deposit. On Thursday, it deposited $2 billion of that total with the central bank, providing additional support to Pakistan’s reserves.“The agreement, signed between the SaudiA Fund for Development (SFD) and the State Bank of Pakistan (SBP), provides for the extension in the maturity of a $3 billion deposit placed by SFD with the State Bank of Pakistan,” said a post on X by the ministry of finance.Officials said Pakistan has been paying around 6 per cent interest on the UAE-linked funds. The deposit arrangements were previously rolled over on a yearly basis, but in December 2025, the term was first extended for one month and then for two months until April 17.Pakistan’s pending billsFor the current fiscal year, Pakistan requires approximately $12 billion in external deposit rollovers, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the UAE.According to official figures, Pakistan’s foreign exchange reserves stood at $16.4 billion as of March 27, a level authorities said was sufficient to cover nearly three months of imports. The latest repayment to the UAE comes as the country continues to manage pressure on its external financial position.