ISLAMABAD – Pakistan has cleared $1.43 billion in external debt obligations, which includes the $1.3 billion Eurobond that matured on April 8, said Khurram Schehzad, the adviser to finance minister.
Taking to X, Schehzad said the repayment reflected continued discipline in debt servicing and demonstrated the country’s improving capacity to meet its financial commitments.
He added that the total amount also covered $126.125 million in coupon payments linked to other Eurobond instruments.
Schehzad credited the timely payments to stable external reserves, improved liquidity conditions, and ongoing macroeconomic stabilisation efforts. He noted that government measures aimed at strengthening investor confidence have contributed to maintaining a sustainable debt trajectory.
He further stated that the smooth handling of large-scale external repayments reinforces Pakistan’s credibility among global investors and financial institutions.
The development comes as Pakistan prepares to repay more than $3 billion in debt to the United Arab Emirates (UAE). According to reports, the loan—rolled over since 2018—is now set to be fully repaid, with clearance expected by April 23.
Earlier, the Foreign Office clarified that repayment would be carried out through the State Bank of Pakistan and dismissed what it described as misleading reports regarding the transaction. It termed the repayment a routine financial obligation and cautioned against speculative narratives.
Officials had previously explored options to convert part of the UAE debt into equity. In November last year, the Deputy Prime Minister and Foreign Minister Ishaq Dar noted that UAE entities had shown interest in equity participation in subsidiaries linked to the Fauji Foundation. In recent years, UAE-based firms have also expanded investments in Pakistan, including acquisitions and long-term port operation agreements.
Meanwhile, Pakistan’s foreign exchange reserves stood at approximately $16.4 billion as of March 27. Analysts note that external repayments, including obligations linked to the UAE loan, continue to place pressure on the economy as it navigates inflationary trends, rising energy costs, and broader external challenges.
Pakistan has managed to stabilise parts of its economy in recent years with support from international lenders such as the International Monetary Fund (IMF) and friendly countries including the UAE, China, and Saudi Arabia.
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