ISLAMABAD – Pakistan has confirmed it will be paying UAE $2 billion after securing funds from alternative sources. The decision ensures the country can meet multiple major financial obligations in the coming months.
According to a report by Geo News, Pakistan faces total external payments of $4.8 billion by June. Authorities say arrangements are already in place to cover these dues.
Sources indicate that Pakistan has received assurances of over $5 billion in financial support from two friendly nations. This support strengthens the country’s capacity to meet upcoming commitments without facing liquidity issues.
The $2 billion owed to the UAE comes under three separate financial agreements. Officials clarified that the payment will proceed only after confirming that alternative funding sources were available. This step ensures Pakistan can manage its immediate obligations while maintaining financial stability.
In addition to the UAE payment, a 10-year Eurobond has matured, and the government is expected to pay $1.3 billion later this week. Authorities emphasized that these steps are part of a broader plan to handle Pakistan’s short-term and medium-term external debts effectively.
Experts say paying UAE at this stage reflects Pakistan’s cautious approach to financial management. It also reassures investors and friendly countries about the country’s commitment to honoring its obligations on time.
The government continues to monitor its external payment schedule closely. Officials stressed that ensuring timely payments is critical to maintaining Pakistan’s credibility in international financial markets.
With alternative funding sources secured, Pakistan is positioned to manage both the $2 billion payment to the UAE and the upcoming Eurobond obligations smoothly. Observers note that such proactive measures are crucial amid ongoing economic challenges.
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The decision underscores Pakistan’s focus on maintaining strong diplomatic and financial relations with key partners while safeguarding national economic stability.
