Pakistan repays $3.5B UAE debt after Saudi support
Pakistan has completed the repayment of $3.5 billion to the United Arab Emirates (UAE) as part of its external debt obligations, the Pakistani central bank said on Friday, following the inflow of $3 billion in Saudi funds, News.Az reports, citing foreign media.
The UAE had provided $2 billion to Pakistan in 2018, which had since been rolled over annually. In 2023, the Gulf nation extended an additional $1 billion loan to help Islamabad meet external financing requirements, while a $450 million facility dated back to 1996–97.
Pakistan was scheduled to return the total $3.5 billion to the UAE by the end of April under bilateral deposit arrangements, as authorities worked to stabilize foreign exchange reserves with support from allies and an International Monetary Fund (IMF) program.
RECOMMENDED STORIES
“State Bank of Pakistan repaid deposit of $ 1 billion to Abu Dhabi Fund for Development (ADFD) UAE on 23April2026,” the Pakistani central bank said on X.
“Deposits of $2.45 billion were repaid last week. This completes the repayment of total deposits of $3.45 billion to UAE.”
Pakistan is working to rebuild its reserves and meet targets under a $7 billion IMF program after a prolonged balance-of-payments crisis, with authorities aiming to lift reserves to around $18 billion by the end of the current fiscal year in June.
Pakistan’s central bank said on Tuesday that it had received a second tranche of $1 billion from Saudi Arabia, providing much-needed financial support to the country. It received the first tranche of $2 billion from Saudi Arabia on April 15.
Pakistan’s Finance Minister Muhammad Aurangzeb announced this month that Saudi Arabia had committed $3 billion in additional financial support for Pakistan and had also agreed to extend an existing $5 billion deposit to help shore up the South Asian country’s forex reserves.
Pakistan has in recent years relied heavily on financial support and rollovers from key partners. Saudi Arabia’s financial support also came amid Pakistan’s repayment of about $1.4 billion in Eurobonds this month.
By Nijat Babayev
Similar news
