Pakistan has repaid the full USD 3.45 billion in deposits owed to the United Arab Emirates, the country's central bank confirmed on Friday, marking a significant development in Islamabad’s external financing management amid ongoing economic pressures.
The State Bank of Pakistan (SBP) said the final repayment was completed on Thursday.
"State Bank of Pakistan repaid a deposit of USD 1 billion to Abu Dhabi Fund for Development (ADFD), UAE on April 23, 2026. Deposits of USD 2.45 billion were repaid last week. This completes the repayment of total deposits of USD 3.45 billion to UAE," it said.
The repayment comes shortly after Pakistan received USD 3 billion in financial assistance from Saudi Arabia. The support was disbursed in two tranches, with the second tranche of USD 1 billion received on April 21.
According to reports, the UAE had sought the immediate return of the funds following recent tensions in West Asia after the US-Israel war on Iran.
The deposits were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments, according to The Dawn newspaper.
In March, Islamabad failed to secure an agreement with the UAE to roll over the USD 3.5 billion facility, the first such setback in seven years, triggering concerns over near-term financing needs.
Pakistan’s foreign exchange reserves remain under strain, though the country continues broader economic stabilisation efforts under IMF-backed reforms. Analysts said external financing risks remain a major vulnerability, especially amid volatile energy prices and tight global capital markets.