Pakistan clears $3.45bn UAE deposits after final repayment

Central bank has confirmed that the final $1 billion payment was made to the Abu Dhabi Fund for Development on April 23

ISLAMABAD: (UrduPoint/UrduPoint / Pakistan Point News-April 24^th, 2026) Pakistan has fully repaid $3.45 billion in deposits owed to the United Arab Emirates after settling the last tranche of $1 billion, the State Bank of Pakistan (SBP) announced on Friday.

In a statement shared on X, the central bank confirmed that the final $1 billion payment was made to the Abu Dhabi Fund for Development on April 23. It added that $2.45 billion had already been repaid earlier in the week, completing the total outstanding amount.

Officials said the repayments were managed through fresh borrowing, primarily from Saudi Arabia, ensuring that the country’s foreign exchange reserves remain stable at around $15 billion.

According to government sources, Pakistan returned $2 billion on April 18 using new Saudi financing, while the remaining $1 billion was also cleared through another loan arrangement from Riyadh.

The repayments come as Pakistan continues efforts to meet its external financial obligations and maintain macroeconomic stability under its programme with the International Monetary Fund.

Officials noted that earlier financial projections had assumed rollovers from friendly countries, including China, Saudi Arabia and the UAE, to cover external financing needs over the next 12 months.

The deposits repaid to the UAE included funds obtained in 2018 during the tenure of former prime minister Imran Khan to support declining foreign exchange reserves, as well as an older loan of $450 million dating back to 1996–97, which has now been settled after decades.

Meanwhile, Saudi Arabia has extended its existing $5 billion deposit support for an additional two years, though officials said details regarding interest rates on the extended and new loans remain unclear.

Pakistan’s external financing framework under the $7 billion IMF programme relies on continued support from key bilateral partners, with Saudi Arabia, the UAE and China collectively maintaining deposits worth $12.5 billion with the central bank until the programme’s completion next year.