Pakistan has fully repaid $3.45 billion in deposits to the United Arab Emirates, marking a significant milestone in the country’s external financial obligations, the State Bank of Pakistan (SBP) confirmed on Friday.
The SBP announced that an additional $1 billion was transferred to the Abu Dhabi Fund for Development on April 23, 2026, completing the repayment process. Earlier, Pakistan had returned $2.45 billion to the UAE during the prior week, settling all outstanding deposits.
“This completes the repayment of total deposits of $3.45 billion to UAE,” the central bank stated on its official X account.
According to the SBP, the full settlement covers all deposits and liabilities owed to the UAE. This development underscores Pakistan’s improving external payment position and reflects positively on the country’s economic stability. The central bank noted that foreign exchange reserves have increased by $136 million during the current financial year, while the current account remains in surplus.
Analysts believe the timely repayment bolsters Pakistan’s credibility with international financial partners. The UAE had extended these deposits as part of bilateral financial support to help shore up Pakistan’s foreign reserves amid balance-of-payments challenges.
“Clearing these liabilities demonstrates fiscal discipline and strengthens investor confidence,” said a senior economist familiar with the matter. The repayment comes as Pakistan continues to implement structural reforms under its IMF program.
Looking ahead, the SBP expressed optimism about further reserve accumulation. Remittances during the upcoming Eid festival are expected to boost reserves, while pilgrims traveling for Hajj will carry their own foreign exchange for expenses. Additionally, an inflow of $250 million from the green shoe option on Eurobonds has already been recorded.
Pakistan’s external sector has shown resilience, with the current account surplus and rising remittances providing a cushion. The central bank’s data indicates that foreign exchange reserves currently stand at sufficient levels to cover several months of imports.
The full repayment to the UAE marks a key step in Pakistan’s journey toward economic recovery, signaling to international markets that the country can meet its financial commitments even amid global economic uncertainties.
Source: ARY News