Federal Minister for Finance Muhammad Aurangzeb said the country is fully prepared to meet all repayment commitments on time. Pakistan is required to repay more than $3 billion to the UAE, while a $1.3 billion Eurobond is also maturing this week, adding pressure on financial resources.

The minister expressed confidence that all financing targets for the current fiscal year will be achieved as planned. He said the government is closely managing funds to avoid any disruption.

He added that economic policies are being shaped in view of regional tensions, while foreign exchange reserves will be maintained in line with agreements with the International Monetary Fund (IMF).

Aurangzeb said preparations are also underway for commercial financing and new bond issuances. Talks are ongoing with a consortium of banks to secure additional funding if needed.

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He further revealed that Pakistan plans to issue Panda bonds by the end of April, targeting up to $1 billion. Since it will be the country’s first such issuance, the process is taking more time than usual.

The government is also reviewing how regional tensions could impact the economy, while continuing coordination with the IMF to keep economic reforms on track. Officials said that although the repayments may temporarily affect foreign exchange reserves, the situation is being managed carefully as part of a broader financial strategy.

The UAE deposit had been kept in Pakistan’s reserves under a rollover arrangement, with an interest rate of 6 percent. However, in recent months, the rollover period has become shorter, increasing repayment pressure. Despite these challenges, the government believes that timely repayments will strengthen Pakistan’s credibility and improve financial relations with international partners.