Pakistan will return a $3.5 billion loan to the United Arab Emirates this month, two government officials said on Tuesday, raising pressure on reserves and risking breaches of IMF program targets with an additional $1.3 billion Eurobond repayment due by June. The repayment comes as Pakistan targets foreign exchange reserves above $18 billion by June under a $7 billion International Monetary Fund programme, which requires bilateral deposits to be rolled over. Another $450 million UAE loan has remained overdue for years, the official added. The IMF, Pakistan's finance ministry and central bank did not respond to requests for comment. If not replenished, the central bank reserves will fall below the level agreed with IMF, which will be a breach of the program.

Source: The Telegraph April 07, 2026 10:12 UTC