Monday, April 13, 2026
HomeAsiaMinister says Pakistan ‘committed’ to repay US$3 billion loan from UAE

Minister says Pakistan ‘committed’ to repay US$3 billion loan from UAE

Pakistan is considering financing from both countries and banks as options to repay a US$3 billion loan from the United Arab Emirates and help maintain foreign exchange reserve levels amid soaring oil prices, Finance Minister Muhammad Aurangzeb said.

The South Asian country this month failed to reach an agreement with the UAE to roll over the debt for the first time in seven years, adding pressure on external buffers at a time when the economy is getting hit by the fallout from the conflict in the Middle East.

“Whatever we need to cover will be a combination of many sources,” including commercial options and bilateral lenders, Aurangzeb said in Washington on Monday. “We’re looking at all options,” he said, declining to provide further details.

The country’s foreign exchange reserves stood at US$16.4 billion as of March 27, enough to cover close to three months of imports.

Before the US-Israeli attack on Iran at the end of February, Pakistan had solid buffers both on the financial side and foreign exchanges, the finance minister said, expressing his confidence in the country’s ability to pay back its creditors.

“We’re very committed to pay and ensure there are other resources available to keep our reserves at the right place,” he said.

Aurangzeb declined to comment on whether there are ongoing discussions with China and Saudi Arabia for financial support. Bloomberg News reported earlier that such talks were taking place, citing people familiar with the matter.

Source link


Discover more from PressNewsAgency

Subscribe to get the latest posts sent to your email.

- Advertisment -