The Kabul Tribune (KT) — Pakistan is in talks with Saudi Arabia and China to secure financial support after being required to repay a roughly $3 billion loan to the United Arab Emirates, Bloomberg reported.
Discussions involve potential loans and investments
exceeding $3.5 billion, according to sources familiar with the matter, who
spoke on condition of anonymity due to the sensitivity of the talks.
Pakistan was unable to reach an agreement with the UAE to
roll over the debt for the first time in seven years and is now expected to
repay the amount by the end of April 2026. The repayment is likely to put
pressure on the country’s foreign exchange reserves, which stand at around $16
billion—enough to cover approximately three months of imports.
Officials from Pakistan’s Ministry of Finance and Ministry
of Foreign Affairs, as well as Saudi Arabia’s Ministry of Media, did not immediately
respond to requests for comment.
Saudi Finance Minister Mohammed Al-Jadaan visited Islamabad
on April 10, 2026, where he held talks with senior officials ahead of
Pakistan’s hosting of high-level discussions between the United States and
Iran.
During the meeting, Prime Minister Shehbaz Sharif reaffirmed
Pakistan’s commitment to expanding cooperation with Saudi Arabia, particularly
in trade, investment and economic development, according to an official
statement.
The two countries have strengthened economic and security
ties in recent months, while relations between Saudi Arabia and the UAE have
reportedly cooled. Saudi Arabia recently said Pakistan had deployed fighter
jets to the kingdom under a mutual defense agreement to enhance regional security.
The UAE has not publicly disclosed the reasons for recalling
its loan. Pakistan’s Foreign Ministry has described the move as a “routine
financial transaction,” downplaying speculation of political tensions.
Pakistan also maintains close economic relations with China,
its largest creditor, with outstanding loans exceeding $25 billion. The country
is seeking to advance the next phase of the China-Pakistan Economic Corridor
under Beijing’s Belt and Road Initiative, following an initial phase valued at
about $60 billion.
Separately, the International Monetary Fund reached a
preliminary agreement with Pakistan last month to release a $1.2 billion
tranche from a $7 billion program. Pakistan has received multiple financial
assistance packages from the IMF since the 1960s.
