ISLAMABAD: Pakistan has successfully completed the repayment of $3.45 billion in deposits owed to the United Arab Emirates, according to an official statement issued by the State Bank of Pakistan (SBP), marking a significant milestone in the country’s external debt management and financial stability efforts.
The central bank confirmed on Friday that it repaid the remaining $1 billion deposit to the Abu Dhabi Fund for Development on April 23, 2026. This final transaction follows the earlier repayment of $2.45 billion made during the previous week, bringing the total settlement to $3.45 billion in outstanding UAE deposits.
According to the SBP, this repayment completes all financial obligations related to the short-term deposits provided by the UAE over recent years. These deposits had played a crucial role in supporting Pakistan’s foreign exchange reserves during periods of economic pressure and external account challenges.
Financial analysts view the development as a positive signal for Pakistan’s macroeconomic stability, particularly as the country continues to navigate inflationary pressures, external financing gaps, and ongoing structural reforms. Strengthening foreign exchange reserves and improving repayment discipline are considered key factors in restoring investor confidence.
The repayment also reflects improving coordination between Pakistan and the UAE, two long-standing economic partners. The UAE has historically provided financial assistance to Pakistan in the form of deposits, investments, and bilateral support during balance-of-payment constraints.
Market experts suggest that the completion of this repayment may help stabilize sentiment in currency and debt markets, as it reduces near-term rollover concerns. However, they also emphasize that Pakistan’s broader external financing challenges remain dependent on continued inflows, including multilateral support and remittances.
The SBP reiterated its commitment to maintaining financial discipline and ensuring timely repayment of foreign obligations while safeguarding foreign exchange reserves. Officials added that ongoing reforms in fiscal management and external sector stability remain a priority for sustaining long-term economic resilience.
The development is expected to be closely monitored by international lenders, credit rating agencies, and investors assessing Pakistan’s economic outlook in the coming months.
