Pakistan aims to settle UAE liabilities, including decades-old obligations, to strengthen financial credibility.
ISLAMABAD: Pakistan has decided to repay $3.5 billion to the United Arab Emirates during the current month, including a long-standing loan dating back nearly three decades, in a move aimed at dispelling speculation surrounding its external liabilities.
According to reports, the repayment plan includes clearing older financial commitments as well as more recent deposits placed with Pakistan’s central bank. The development signals Islamabad’s intent to improve its financial standing and reassure international partners.
Officials familiar with the matter say part of the repayment relates to liabilities that originated in the mid-1990s, reflecting efforts to close historical debt accounts. The government, led by Prime Minister Shehbaz Sharif, is pursuing the move as part of broader economic management and fiscal discipline measures.
Economic analysts view the repayment as a positive step toward strengthening credibility with foreign partners and financial institutions. However, they caution that Pakistan must continue reforms, boost exports, and manage reserves carefully to sustain stability.
The decision is expected to reduce uncertainty in financial markets while reinforcing bilateral ties between Pakistan and the UAE, a long-time economic partner.
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