Key Points
- Earlier payments of $2.45 billion cleared last week
- Recent funds from Saudi Arabia enable UAE and Eurobond repayments
- Timely repayments reflect external debt servicing obligations
ISLAMABAD: Pakistan has completed repayment of $3.45 billion in deposits to the United Arab Emirates(UAE), the central bank said on Friday, marking a notable outflow from the country’s foreign exchange reserves.
According to the State Bank of Pakistan, a $1 billion deposit was repaid to the Abu Dhabi Fund for Development on April 23.
The payment follows earlier repayments of $2.45 billion made during the previous week.
State Bank of Pakistan repaid deposit of US$ 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
“With this, total deposits of $3.45 billion have been repaid to the UAE,” the central bank said in a statement posted on its official social media account.
Such deposits, placed by partner countries including the UAE, form part of Pakistan’s external financing support and are typically held with the central bank to support foreign exchange reserves.
Repayments of these deposits can reduce reserve levels unless replaced through fresh inflows or rollovers.
The development comes at a time when Pakistan continues to manage its external account through multilateral funding, bilateral support and import management measures aimed at maintaining reserve stability.
Pakistan has also paid over $1 billion in Eurobonds repayments on the maturity of the debt instrument floated in the Western market.
Fresh funds worth $8 billion from Saudi Arabia, an extension of the existing $5 billion deposit, and $3 billion fresh transfers to the State Bank of Pakistan, enabled Pakistan to keep its external account stable even after repayments of almost $5 billion.
Analysts say repayment of foreign deposits signals adherence to external obligations, though it also points to continued pressure on the country’s balance of payments position.
Pakistan has relied on financial support from Gulf countries, including the UAE and Saudi Arabia, in recent years to strengthen reserves and meet external financing needs. Gulf countries have also been among the top sources of remittances flow for Pakistan, with Saudi Arabia on top.
