Islamabad, April 7, 2026 – Finance Minister Muhammad Aurangzeb has confirmed that Pakistan is scheduled to make external repayments of approximately $4.8 billion by June 2026, underscoring ongoing fiscal and external pressures facing the economy.
Speaking in Parliament, the finance minister revealed that Pakistan will repay a $3.5 billion loan to the United Arab Emirates this month, followed by an additional $1.3 billion Eurobond repayment due by June. He emphasized that these repayments are part of the country’s broader financial obligations and must be managed carefully to maintain macroeconomic stability.
Aurangzeb also highlighted concerns about the global economic environment, warning that disruptions caused by geopolitical tensions and energy sector instability could persist for months. He noted that damage to infrastructure in key regions, particularly in the Gulf, may delay recovery even if a ceasefire is reached.
“Even if the cessation is achieved, it will take weeks, even months, to normalize,” he said, adding that Pakistan must plan accordingly.
The finance minister stated that the government is closely monitoring rising petroleum prices, freight charges, and insurance costs, all of which are affecting trade and import dynamics. He stressed the need for strategic reserves to safeguard against future shocks.
To provide relief, the government has introduced subsidies for two-wheelers, four-wheelers, and public transport, with disbursements already underway. Aurangzeb added that subsidies totaling Rs129 billion have been allocated for petroleum products to ease the burden on consumers.
He further noted that several countries in the region have already begun rationing fuel, with significant price hikes reported in nations such as the UAE. While Pakistan’s remittances remain stable for now, he cautioned that around 40–50% of inflows originate from Gulf countries, making the economy vulnerable to regional developments.
Aurangzeb reiterated the importance of support from the International Monetary Fund (IMF), stating that Pakistan requires financial backing under the Extended Fund Facility (EFF) to navigate the current challenges.
The minister concluded that the government will continue to monitor external risks while ensuring timely repayments and maintaining economic stability amid global uncertainties.