Pakistan Repays $2 Billion Loan to United Arab Emirates
Islamabad : Pakistan has fully repaid a $2 billion deposit/loan to the United Arab Emirates (UAE), the State Bank of Pakistan (SBP) confirmed.The amount, which was held as a safe deposit with the State Bank under bilateral commercial agreements, has been returned following the maturity and UAE’s request. Pakistani authorities described the repayment as a…
Islamabad : Pakistan has fully repaid a $2 billion deposit/loan to the United Arab Emirates (UAE), the State Bank of Pakistan (SBP) confirmed.
The amount, which was held as a safe deposit with the State Bank under bilateral commercial agreements, has been returned following the maturity and UAE’s request. Pakistani authorities described the repayment as a “routine financial transaction” carried out through mutually agreed terms.
The State Bank assured that the full repayment of the $2 billion to the UAE will not significantly impact the country’s foreign exchange reserves. Officials emphasized that the transaction was handled smoothly and that reserves remain stable.
The UAE had previously rolled over the deposit on multiple occasions to support Pakistan’s balance of payments. The funds carried approximately 6% interest. Recent reports indicated that amid regional tensions in West Asia, the UAE sought early repayment of the matured deposit.
To manage the outflow, Pakistan received fresh support of $2 billion from Saudi Arabia, which helped bolster the reserves. As of late March 2026, Pakistan’s foreign exchange reserves stood around $16.4 billion before recent inflows and outflows.
This repayment is part of Pakistan’s ongoing efforts to manage its external debt obligations while maintaining macroeconomic stability under the International Monetary Fund (IMF) programme. The development reflects continued strong financial ties between Pakistan and the Gulf countries despite occasional adjustments in deposit tenures.
