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Pakistan to Repay $3.5 Billion Loan Amid Reserve Concerns

4/8/2026

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Story summary
  • Pakistan will repay a $3.5 billion loan to the United Arab Emirates (UAE) this month.
  • Pakistan's foreign exchange reserves stand at about $16.4 billion.
  • The repayment follows settlement of a $1.3 billion Eurobond due April 8.
  • Senator Mushahid Hussain warned the UAE about its growing ties with India, citing geopolitical risks.
  • Analysts say these repayments could stretch reserves and the rupee, underscoring the need for timely support from allied nations.