Pakistan has repaid all outstanding deposits owed to the United Arab Emirates, completing payments of $3.45 billion, according to the State Bank of Pakistan. The central bank said $1 billion was repaid to the Abu Dhabi Fund for Development on April 23, following repayments of $2.45 billion made earlier. The payments mark the settlement of deposits that had previously been rolled over annually by the United Arab Emirates.
The repayments come as Pakistan works to strengthen its external position under a $7 billion programme with the International Monetary Fund, which includes targets for building foreign exchange reserves. To support its reserves after repayments to the United Arab Emirates, Pakistan secured $3 billion in financing from Saudi Arabia. On April 17, Pakistan signed an agreement with the Saudi Fund for Development to extend a $3 billion deposit.
Earlier, on April 15, Saudi Arabia provided $2 billion to help Pakistan meet a financing gap linked to repayments to the United Arab Emirates, with the State Bank of Pakistan confirming receipt of the funds. Subsequently, on April 21, the State Bank of Pakistan confirmed the inflow of another $1 billion from Saudi Arabia as the second tranche of the $3 billion deposit arrangement. Earlier this month, Pakistan also repaid a $1.43 billion Eurobond that matured on April 8, 2026. According to the State Bank of Pakistan, foreign exchange reserves rose by $18 million to $15.10 billion in the week ended April 17.