ISLAMABAD: The State Bank of Pakistan (SBP) has confirmed that the government has repaid a $2 billion deposit previously placed by the United Arab Emirates (UAE), describing it as a routine settlement of a safe deposit arrangement held with the central bank.
An SBP spokesperson said on Saturday that the funds had been maintained with the central bank as part of a deposit mechanism between the two countries.
The confirmation came shortly after Pakistan and Saudi Arabia agreed to extend the maturity of a separate $3 billion deposit held by the Saudi Fund for Development (SFD) with the SBP. Under the agreement, the rollover extends the repayment timeline of the Saudi facility.
Earlier this week, the SBP also reported receiving $2 billion from Saudi Arabia on April 15, 2026, helping support the country’s foreign exchange reserves.
Despite the inflows, Pakistan’s external financing pressures are expected to rise following the repayment of the UAE deposit, along with an additional estimated 6% interest cost. The country has also recently settled $1.43 billion in external obligations, including a $1.3 billion Eurobond repayment.
Finance Minister Muhammad Aurangzeb has said the government is exploring multiple financing options to manage upcoming repayments and stabilize reserves, including Eurobonds, Islamic sukuk, and dollar-settled rupee-linked instruments. He indicated that new Eurobond issuances are expected later this year, alongside discussions on commercial borrowing.
Speaking during the IMF and World Bank spring meetings, the finance minister said Pakistan’s foreign exchange reserves currently cover around 2.8 months of imports, which remains critical for macroeconomic stability.
He added that while no immediate changes have been requested to the $7 billion International Monetary Fund (IMF) programme, evolving global conditions could lead to future adjustments. The IMF Executive Board is expected to approve the next tranche of funding—worth nearly $1.3 billion—later this month or early next month under existing financing arrangements.