Pakistan Repays UAE Loans in Full, Forex Reserves Hold Strong Above $15B: State Bank Update

Pakistan successfully closed its debt chapter with the UAE this month, repaying the final $1 billion of a larger bilateral deposit. Despite clearing $4.85 billion in external obligations—including Eurobonds—the State Bank confirms that foreign exchange reserves remain stable above $15 billion, bolstered by a fresh $3 billion influx from Saudi Arabia.

In a major move for the country’s external account, Pakistan just handed back the final $1 billion to the United Arab Emirates. This wasn’t an isolated payment; it followed a $2.45 billion installment paid earlier in April.

In total, the SBP has funneled $3.45 billion back to the UAE in just a few weeks. Every cent of the deposits placed by the Emirates has now been fully settled. When you factor in the $1.4 billion Eurobond payment made in March, the total outflow hits a staggering $4.85 billion.

Usually, such a massive drain would trigger alarms for the Pakistan economy and the Pakistani Rupee. However, the floor hasn’t dropped out. Official foreign exchange reserves are still hovering above $15 billion. This stability is largely thanks to a $3 billion safe deposit received from Saudi Arabia this month, which acted as a vital cushion against these heavy repayments.

For anyone watching the Pakistan stock market or the Gold rate in Pakistan, this fiscal discipline provides a rare moment of predictability. The government is meeting its hard-currency commitments without letting the reserves hit the danger zone.