Pakistan has repaid the full $3.45 billion it owed to the United Arab Emirates, the country's central bank confirmed on Friday. The development comes days after Pakistan secured $3 billion in financial assistance from Saudi Arabia, which was received in two tranches, including a second instalment of $1 billion on April 21.
The State Bank of Pakistan (SBP) announced via a social media post that the repayment was completed on Thursday. "State Bank of Pakistan repaid a deposit of USD 1 billion to Abu Dhabi Fund for Development (ADFD), UAE on April 23, 2026. Deposits of USD 2.45 billion were repaid last week. This completes the repayment of total deposits of USD 3.45 billion to UAE," the central bank stated.
The funds were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan's balance of payments, according to Dawn. The UAE had reportedly sought the immediate return of its deposits amid the evolving situation in West Asia following the US-Israel war on Iran.
In March, Islamabad failed to secure a rollover of the $3.5 billion facility from the UAE, marking the first such setback in seven years and raising concerns over short-term financing gaps. For the current fiscal year, Pakistan requires approximately $12 billion in external deposit rollovers, including $5 billion from Saudi Arabia and $4 billion from China.
According to official data, Pakistan's foreign exchange reserves stood at $16.4 billion as of March 27, sufficient to cover nearly three months of imports. The latest repayment to the UAE underscores the ongoing pressure on Islamabad's external financial position as it navigates its fiscal challenges.
