# The repayment comes at a time when Islamabad’s foreign exchange reserves have fallen.

*fintech · news · 2026-04-07 · Free Press Journal*

## Key points

- Pakistan must repay $3.5 billion to the UAE this month with no rollover extension.
- The UAE's refusal to extend rollovers is influenced by shifting geopolitics, including US-Israel-Iran tensions.
- Pakistan is exploring converting some UAE debt into investment to ease immediate repayment pressure.
- Pakistan's perceived closeness to Iran is complicating its financial relations with Gulf partners like the UAE.
- The urgency of repayment may undermine Pakistan's ability to pay for imports and maintain currency stability.

**Countries:** Pakistan, United Arab Emirates

[Read the full story on Free Press Journal](https://www.freepressjournal.in/business/pakistans-35-billion-uae-debt-repayment-deadline-looms-foreign-exchange-reserves-at-critically-low-levels)

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