Pakistan repays $3.45 billion loan to UAE

Pakistan has repaid the full $3.45 billion it owed to the United Arab Emirates, the State Bank of Pakistan said on Friday.

According to the Pakistan’s central bank, $1 billion was returned to the Abu Dhabi Fund for Development on April 23, while the remaining $2.45 billion had been repaid to the UAE earlier in the week. “This completes the repayment of total deposits of $3.45 billion to UAE,” the bank said in a statement posted on X.

The repayment comes after Pakistani officials signaled earlier this month that the country intended to settle roughly $3.5 billion in obligations to the UAE before the end of April. A senior official described the move as a deliberate decision to uphold “national dignity,” despite the anticipated strain on foreign exchange reserves.

The funds were originally extended in 2019 as part of financial support from the UAE to help Pakistan stabilize its balance of payments. However, in March, Islamabad was unable to secure a rollover of the facility—its first such setback in seven years—raising concerns about short-term financing needs.

Separately, the central bank reported that Pakistan’s foreign reserves stood at $20.63 billion as of April 17. During April, the country also received $3 billion in deposits from Saudi Arabia, including a $1 billion tranche on April 21.

Pakistan’s external position remains under pressure but is being managed as part of ongoing stabilization efforts tied to reforms supported by the International Monetary Fund. Analysts warn that risks persist, particularly due to volatile energy prices and tight global financial conditions.