ISLAMABAD (Rizwan Abbasi): Pakistan has finalized arrangements to repay $3 billion to the United Arab Emirates, with the payment expected to be made in phases within the coming week.
According to sources in the Ministry of Finance, a strategy has also been prepared to increase the State Bank of Pakistan’s foreign exchange reserves to $18 billion by June.
Sources said that $2 billion is likely to be repaid to the UAE on April 17, while the remaining $1 billion is planned to be paid on April 23. In addition, Pakistan has already repaid a nearly 30-year-old loan of $450 million to the UAE.
Finance Ministry sources stated that an additional $3 billion financial facility from Saudi Arabia is expected to ease pressure on Pakistan’s foreign exchange reserves. With this support, the total volume of Saudi deposits in Pakistan is expected to increase to $8 billion.
Sources further said that, in addition to deposits, Saudi Arabia may also expand its deferred oil payment facility for Pakistan. Currently, Saudi Arabia is providing Pakistan with an oil facility of around $100 million per month, while the total estimated oil facility for the current fiscal year is about $1 billion. The existing $1 billion Saudi oil facility is nearing its completion.
Meanwhile, Pakistan is also expected to receive the next tranche of $1.21 billion from the International Monetary Fund (IMF) next month. A staff-level agreement between Pakistan and the IMF has already been reached, while the disbursement will be made after approval from the IMF Executive Board.
According to Finance Ministry sources, Pakistan also plans to issue bonds in international capital markets this year, while work is underway to launch Panda Bonds in the Chinese market. The government is also considering borrowing from commercial banks as part of its financing strategy.
Sources said that Pakistan currently holds $12 billion in deposits from friendly countries, including $5 billion from Saudi Arabia, $4 billion from China, and $3 billion from the United Arab Emirates.
