Pakistan To Return $3.5 Billion UAE Debt In April Despite Reserve Strain

Pakistan has announced it will return 3.5 billion dollars in debt to the United Arab Emirates before the end of the month, citing national dignity as the key reason behind the decision. The move comes despite concerns over pressure on the country’s foreign exchange reserves. The funds were originally extended in 2019 by the Abu Dhabi Fund for Development to stabilise Pakistan’s balance of payments during a financial crisis. Reports suggest that the UAE had sought immediate repayment, prompting Islamabad’s response. Officials maintain that safeguarding national pride remains paramount, even as economists warn of potential economic strain and challenges in maintaining reserve stability in the near term.