KARACHI – Pakistani government finally repaid $2 billion to UAE as part of $3.5 billion deposit repayment due this month. amid ongoing external financing pressures, heavy debt obligations, and reliance on financial assistance.
Islamabad made $2 billion repayment to United Arab Emirates against maturing deposits due this month, a central bank official confirmed on Saturday, as the country continues to navigate intense external financing pressures and heavy debt obligations.
The repayment is part of a larger $3.5 billion obligation to UAE scheduled to be settled by the end of April under bilateral deposit arrangements. The development comes at a critical time when Pakistan is relying on support from allied countries and an ongoing International Monetary Fund (IMF) program to stabilize its foreign exchange reserves.
State Bank of Pakistan (SBP) spokesperson confirmed the transaction, saying the government made $2 billion repayment to the UAE, but he did not disclose the exact timing of the payment. When asked about the remaining amount, he added, “For now, I can confirm this much [$2 billion repayment] only.”
Officials called repayment of UAE deposits as a routine, pre-agreed financial arrangement, even as local media reports have raised concerns about its potential strain on Pakistan’s external financial position.
Pakistan increasingly depended on financial assistance, rollovers, and deposits from key allies such as Saudi Arabia and China to maintain foreign exchange reserves required under its $7 billion IMF program.
Pakistan made $1.4 billion in Eurobond repayments this month, underscoring the continued strain on its balance of payments, even as inflows from friendly countries help cushion the impact.
