Islamabad (TDI): The State Bank of Pakistan (SBP) has confirmed that Pakistan has fully repaid a $3.45 billion deposit to the United Arab Emirates.
In a statement posted on X, the central bank said $1 billion was returned to the Abu Dhabi Fund for Development on April 23, while the remaining $2.45 billion was repaid earlier in the week. The SBP said this marks the complete settlement of all outstanding UAE deposits.
A senior official had earlier indicated that Pakistan decided to return the funds before the end of the month, describing the move as one taken in the interest of “national dignity,” despite its impact on foreign exchange reserves.
The deposits were originally provided by the UAE in 2019 to support Pakistan’s balance of payments position during a period of external financing pressure.
Earlier this year, Pakistan was unable to secure an agreement with the UAE to roll over the $3.5 billion facility, marking the first such failure in several years and raising concerns about short-term external financing needs.
Read More: Aurangzeb Says Pakistan Exploring Multiple Financing Options to Replace $3.5bn UAE Loan
Separately, the State Bank reported that Pakistan’s foreign exchange reserves stood at $20.63 billion as of April 17. The position includes recent inflows, including a $3 billion deposit from Saudi Arabia, received in two instalments during April.
Read More: Pakistan Moves to Return $3.5bn UAE Loan Despite Reserve Risks
The latest repayment comes as Pakistan continues broader economic stabilisation efforts under an IMF-supported programme. However, analysts warn that external financing risks remain a key challenge, especially amid global economic uncertainty and energy price volatility.
