Pakistan will have to repay between $3 billion and $3.5 billion to the United Arab Emirates in April after Abu Dhabi declined to roll over short-term deposits that had earlier been extended. The largest tranche, a $2 billion deposit, is due on 17 April, while additional repayments of roughly $450 million and $1 billion are scheduled within the same month, according to reports. An additional $1 billion UAE deposit is also expected to mature in July 2026, indicating that the current outflow pressure may extend beyond April.
These deposits are part of a broader external financing framework that Pakistan has relied on to maintain its foreign exchange reserves under an ongoing International Monetary Fund programme, which requires the country to maintain reserve thresholds, according to IMF programme documents.
Pakistan’s economy is currently in a fragile stabilisation phase. The International Monetary Fund has projected real GDP growth of about 3.2% in 2026 even as it remains under a $7 billion IMF programme.
The repayment comes amid renewed external pressure from rising global oil prices linked to instability in the Middle East.
The UAE had previously rolled over similar deposits on maturity, but has now refused to do so with no official statement from the UAE government publicly detailing the rationale for declining a rollover.
Analysts note that a shift towards tighter capital allocation is likely to be the reason behind this decision as the Gulf economy faces mild short-term headwinds in its non-oil sector.
The repayment is expected to increase Pakistan’s reliance on alternative external financing sources, particularly Saudi Arabia and China, both of which have historically provided deposits, oil credit facilities, and loan rollovers to support Pakistan’s balance of payments position.
