Pakistan is confronting a severe balance-of-payments crisis in April 2026, with $4.8 billion in debt repayments due this month — including a $1.3 billion Eurobond and a $3.5 billion UAE repayment — that could reduce State Bank of Pakistan reserves from $16.38 billion to roughly $11.5 billion. The crisis is compounded by the ongoing disruption to the Strait of Hormuz (the narrow waterway through which over 80% of Pakistan's energy imports pass), caused by the US-Iran conflict, which has driven fuel prices up by as much as 43–55% and is forecast to raise Pakistan's annual import bill by up to $4.5 billion, potentially pushing the trade deficit to a record $41.8 billion. Saudi Arabia and Qatar have pledged $5 billion in emergency financial support — $2 billion from Riyadh already received — and a $1.2 billion IMF staff-level agreement provides a partial buffer, but analysts warn these measures fall short of shielding Pakistan from what the International Energy Agency has called the largest energy supply disruption in history, with inflation projected to climb as high as 17% if the conflict persists.