The State Bank of Pakistan – (Special Correspondent / Web Desk) – Pakistan has fully repaid $3.45 billion to the United Arab Emirates. The State Bank of Pakistan (SBP) confirmed the final payment of $1 billion to the Abu Dhabi Fund for Development. This came days after an earlier repayment of $2.45 billion.
The money was originally deposited by the UAE in 2019. It was part of emergency financial support to help Pakistan stabilise its economy and manage its balance of payments crisis.
Why did Pakistan repay the UAE now?
Abu Dhabi had formally requested the return of the matured deposits. Pakistan’s Foreign Office spokesperson Tahir Andrabi said the repayment was made under bilateral commercial agreements and described it as a routine financial transaction.
State Bank of Pakistan repaid deposit of US$ 1 billion to Abu Dhabi Fund for Development (ADFD) UAE on 23April2026. Deposits of $2.45 billion were repaid last week. This completes the repayment of total deposits of $3.45 billion to UAE.
— SBP (@StateBank_Pak) April 24, 2026
In recent months, the UAE had been rolling over the deposits for shorter durations — sometimes just one month. This was seen as a sign of growing unease. At one stage, the facility was extended for only one month, then again for two more months, pushing deadlines into mid and late April 2026.
“Any attempt to portray it otherwise is erroneous and misleading.” — FO Spokesperson Tahir Andrabi
What does this mean for Pakistan’s reserves?
Pakistan’s central bank currently holds around $16.3 billion in foreign exchange reserves. A $3 billion-plus repayment cuts that buffer by nearly 18%. That is a significant drop.
Under its ongoing IMF programme, Pakistan must secure about $12.5 billion in rollovers from China, Saudi Arabia, and the UAE. The UAE deposits played a key role in meeting that target. Losing them puts pressure on Pakistan’s financing position.
Pakistan’s Ministry of Finance said it is actively monitoring and managing all external financial flows to keep reserves stable.
Pakistan repaid $2 billion to the UAE on April 18, 2026. Then it sent another $2.45 billion shortly after. The final $1 billion was paid to the Abu Dhabi Fund, completing the total of $3.45 billion. Pakistan had been paying a 6% annual interest rate on the deposited amount.
Officials say the return of these funds ends months of uncertainty. The arrangement had been rolled over multiple times since 2019 — a sign that both sides had long been searching for the right moment to close it out.
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