The repayment comes as Pakistan targets foreign exchange reserves above US$18 billion by June under a US$7 billion International Monetary Fund programme, which requires bilateral deposits to be rolled over. Pakistan's central bank reserves stand at about US$16.4 billion as of March 27, with the UAE loan — around 18% of holdings — adding pressure on an economy still recovering as fuel costs rise and shortages linked to the Iran warspur inflation and weigh on growth. Another US$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 programme.

Source: The Edge Markets April 07, 2026 15:44 UTC