Pakistan says it has repaid $3.45 billion debt to UAE

Pakistan said Friday that it has fully repaid $3.45 billion in debt to the United Arab Emirates, marking the clearing of a major external obligation for the cash-strapped economy.

Pakistan says it has repaid $3.45 billion debt to UAE

Riyaz ul KhaliqSaturday April 25, 2026

Pakistan said Friday that it has fully repaid $3.45 billion in debt to the United Arab Emirates, marking the clearing of a major external obligation for the cash-strapped economy.

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In a statement, the State Bank of Pakistan said it had returned a $1 billion deposit to the Abu Dhabi Fund for Development (ADFD), UAE.

“Deposits of $2.45 billion were repaid last week. This completes the repayment of total deposits of $3.45 billion to the UAE,” the central bank said.

The repayment comes at a time when Islamabad has also benefited from fresh support from Saudi Arabia, which this month granted Pakistan funds of around $3 billion.

Riyadh also rolled over an existing $5 billion deposit for a longer period, a move that added to Pakistan’s financial breathing room.

The State Bank of Pakistan said the country’s total foreign reserves stood at $20.63 billion as of last week.

Pakistan received the ADFD funds in 2019 as part of efforts to help stabilize the South Asian country’s balance of payments.