Mazaj News (Web Desk) Pakistan has fully repaid $3.45 billion in deposits to the United Arab Emirates, according to confirmation from the State Bank of Pakistan on Friday.
The central bank stated that $1 billion was returned to the Abu Dhabi Fund for Development on April 23, while the remaining $2.45 billion had been repaid to the UAE earlier in the week. In a post on X, the SBP said this marks the complete settlement of the $3.45 billion owed.
Earlier this month, a senior official indicated that Pakistan intended to clear approximately $3.5 billion in debt to the UAE before the end of April. The decision was described as a step taken to preserve “national dignity,” despite the expected impact on the country’s foreign exchange reserves.
The deposits were originally provided by the UAE in 2019 to support Pakistan’s balance of payments during a period of financial strain. However, in March, Islamabad was unable to secure an extension on the $3.5 billion facility—its first such setback in seven years—raising concerns about short-term external financing.
In a separate update shared a day earlier, the SBP reported that Pakistan’s total foreign exchange reserves stood at $20.63 billion as of April 17.
During April, Pakistan also received $3 billion in financial support from the Saudi Arabia, delivered in two installments, with the second tranche of $1 billion arriving on April 21.
While the country’s external position remains under strain, it continues to be supported by economic reforms under an International Monetary Fund programme. Analysts caution, however, that external financing challenges persist, especially in the face of fluctuating energy costs and tight global financial conditions.