ISLAMABAD: Pakistan has successfully repaid its entire debt of USD 3.45 billion to the United Arab Emirates, the State Bank of Pakistan (SBP) announced on Friday. The central bank confirmed that the final tranche of USD 1 billion was repaid on Thursday, completing the settlement of the outstanding amount.
According to details received by The Chenab Times, the SBP stated in a social media post that the USD 1 billion deposit to the Abu Dhabi Fund for Development (ADFD), UAE, was repaid on April 23, 2026. Prior to this, deposits totaling USD 2.45 billion were settled in the preceding week, thus concluding the full repayment of the USD 3.45 billion owed to the UAE.
This significant repayment follows closely on the heels of Pakistan receiving a substantial USD 3 billion financial aid package from Saudi Arabia. The Saudi Arabian funds were disbursed in two installments, with the second tranche of USD 1 billion arriving on April 21.
The UAE had reportedly requested the prompt return of these funds amid escalating tensions in West Asia, particularly in the context of the US-Israel conflict with Iran. Information available with The Chenab Times indicates that these deposits were originally part of the external financing support extended by the UAE in 2019, aimed at bolstering Pakistan’s balance of payments and stabilizing its economy.
Earlier in March, Pakistan had reportedly encountered difficulties in securing an agreement with the UAE to roll over a USD 3.5 billion facility. This marked the first instance of such a failure in seven years and had consequently raised concerns regarding the country’s short-term financing needs. The nation’s foreign exchange reserves, while currently under considerable pressure, are being managed as part of a broader stabilization strategy guided by reforms supported by the International Monetary Fund (IMF).
Analysts have pointed out that external financing risks continue to represent a significant vulnerability for Pakistan. This is particularly true given the prevailing volatility in global energy prices and the constrained conditions in international capital markets, which can impact a country’s ability to secure necessary funding.
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The Chenab Times News Desk
