Pakistan has repaid a total of $3.45 billion in deposits to the United Arab Emirates (UAE), the State Bank of Pakistan (SBP) confirmed on Friday.
According to the central bank, $1 billion was repaid to the Abu Dhabi Fund for Development on April 23, while the remaining $2.45 billion was settled last week, completing the full repayment.
Earlier this month, a senior official had indicated that Pakistan would return the entire amount before the end of April, describing the decision as necessary to uphold “national dignity,” despite the pressure it would place on foreign exchange reserves. The deposits were originally provided by the UAE in 2019 to support Pakistan’s balance of payments.
In March, Pakistan failed to secure a rollover agreement for the facility — the first such instance in seven years — raising concerns about short-term financing gaps and external stability.
The repayment comes at a time when the country’s foreign reserves are under strain. According to the SBP, total reserves stood at $20.63 billion as of April 17. However, some support has come from Saudi Arabia, which recently provided a $3 billion deposit in two tranches, including $1 billion received on April 21.
While Pakistan continues to pursue economic stabilisation under an IMF-backed programme, analysts warn that external financing risks remain significant, particularly amid volatile global energy prices and tight international financial conditions.
