Archive · 29 Dec 2025
Pakistan Sells Stake to UAE to Reduce Debt
Pakistan is in a lot of debt.
To help fix this, they are selling a part of a big company called the Fauji Foundation to the United Arab Emirates (UAE) for $1 billion.
This will help Pakistan pay off some of its debt.
The UAE is also helping by extending another $2 billion in loans.
Pakistan has been getting help from other countries like China and Saudi Arabia too.
The country's economy has been struggling with high inflation, natural disasters, and the COVID-19 pandemic.
The International Monetary Fund (IMF) is also helping Pakistan with financial support.
Analysts say Pakistan keeps needing help from the IMF because it has big problems in its economy that aren't being fixed.
Pakistan is selling a $1 billion stake in the Fauji Foundation to the UAE to reduce its debt.
The transaction is expected to be completed by 31 March, eliminating a $1 billion liability.
The UAE is also rolling over $2 billion in loans to Pakistan.
Pakistan's total external debt is $91.8 billion, with total public debt at $286.8 billion.
The IMF has disbursed $3.3 billion so far, with $1 billion from the EFF and $200 million from the RSF set for release under a staff-level agreement.
- Who
- Pakistan's Fauji Foundation and the United Arab Emirates (UAE)
- What
- Sale of a $1 billion stake in the Fauji Foundation to the UAE
- When
- Transaction expected to be completed by 31 March
- Where
- Pakistan
- Why
- To shore up Pakistan's chronic debt crisis and eliminate a $1 billion liability
- Stake Value
- $1 billion
- Liability End Date
- 31 March
- Total External Debt (June 2025)
- $91.8 billion
- Total Public Debt (June 2025)
- $286.8 billion
- Funds Raised in Last 2 Years
- $12 billion
- IMF Extended Fund Facility
- $7 billion
- IMF Resilience and Sustainability Facility
- $1.3 billion
- IMF Disbursements So Far
- $3.3 billion
Sources
Pakistan’s Fauji Foundation to sell $1 bn stake to UAE as Islamabad looks to shore up chronic debt crisis
Amid spiralling debt crisis, Pakistan to sell $1bn Fauji Foundation stake to UAE
Why Does The IMF Keep Bailing Out Pakistan Despite Repeated Reform Failures?
