Pakistan assures UAE debt repayments amid financing push

Finance Minister Muhammad Aurangzeb said the government has made arrangements to meet repayment obligations on UAE loans and Eurobonds, as it works to stabilize the economy under its program with the International Monetary Fund. Speaking informally to reporters, Aurangzeb said Pakistan remains committed to honoring all its payment obligations on time and will maintain foreign exchange reserves in line with IMF targets. He emphasized the need for prudent policymaking given the current tense regional situation, adding that authorities are assessing its potential economic impact. The minister said preparations are underway to raise funds through commercial financing and bond issuances. Talks are ongoing with a consortium of banks to secure commercial financing, he added. Aurangzeb also said Pakistan plans to resume efforts by the end of April to issue Panda bonds, with a target of raising about $1 billion. He noted that the process is taking time as it will mark Pakistan’s first issuance of Panda bonds. He expressed confidence that financing targets for the current fiscal year will be met as committed. The finance minister said recent policy measures agreed with the IMF have helped steer the economy in the right direction, adding that key economic decisions and budget preparations will be finalized in the coming days.