What happened
Pakistan repaid $1.43 billion in external debt on Tuesday, including a $1.3 billion Eurobond maturing on 8 April, Adviser to the Finance Minister Khurram Schehzad said.
“As part of its routine course of external debt management, Pakistan has repaid its $1.3bn Eurobond maturing on April 8 — on schedule and in full,” Schehzad said in a post on X. He said the country had also met $126.125 million in coupon obligations on other Eurobond issuances, bringing total payments on Tuesday to “over $1.426bn.”
“Debt servicing continues to be executed as a non-event — reflecting consistency, discipline, and strengthened capacity,” he said, adding that the “seamless execution of large external repayments underscores both capacity and consistency.”
The repayment follows Pakistan’s decision to return $3.5 billion in deposits to the United Arab Emirates before the end of April. A senior Pakistani official said Abu Dhabi had sought the immediate return of the money, part of external financing support extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments. Reuters, citing two government officials, reported that clearance was expected by 23 April.
Why it matters
The payments land on a balance of payments that is still under pressure from the Middle East conflict. State Bank of Pakistan foreign exchange reserves stood at about $16.4 billion as of 27 March, and the UAE deposit is roughly 18 per cent of those holdings. Paying it back rather than rolling it over drains a buffer at a moment when higher fuel import costs are already feeding inflation and weighing on growth.
Reuters reported that the repayments raise pressure on reserves and risk breaches of IMF programme targets. Islamabad and the IMF have been working through the latest review under the $7 billion Extended Fund Facility, making the external position a live test of the programme’s assumptions.
The finance adviser framed the repayments as evidence of restored credibility with global investors, a message aimed as much at rating agencies and bondholders as at domestic audiences.
What is still uncertain
It is not clear whether the UAE will provide fresh financing, roll over other deposits or link any future support to the timing of the repayment. Reuters said a senior Pakistani official indicated the return of the $3.5 billion had been requested by Abu Dhabi.
How far reserves fall in the coming weeks will depend on continued inflows, including any new deposits from Gulf partners, and on the pace of oil-related import costs if the conflict continues. The IMF review’s completion and the release of the next tranche are also still pending.
Sources & reporting notes
This is a synthesis of published material, not eyewitness reporting. Sources were reviewed on 2026-04-08.
- Dawn — "Pakistan has repaid $1.43 billion in debt, including Eurobond due April 8, adviser says"7 April 2026 · Khurram Schehzad's statement, the $1.3bn Eurobond, the $126.125 million in coupons, the $3.5bn UAE return and the $16.4bn reserves figure.
- Reuters — "Pakistan's repayment of $3.5 billion UAE loan puts pressure on its economy"7 April 2026 · Two government officials on the repayment, the IMF programme-target risk and the expected 23 April clearance.
