State Bank of Pakistan has completed the full repayment of $3.45 billion owed to the United Arab Emirates after making a final payment of $1 billion to the Abu Dhabi Fund for Development. Officials described the settlement as a major financial milestone that concludes Pakistan’s outstanding deposits and loan obligations to the Gulf country.
According to central bank officials, the repayment process included a large transfer of $2.45 billion made earlier, which significantly reduced the outstanding balance before the final instalment was completed. With the latest $1 billion payment, Pakistan has now fully cleared all deposits and loans previously extended by the United Arab Emirates to support the country’s financial stability.
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The financial support from the UAE had accumulated over several years through multiple arrangements designed to assist Pakistan during periods of economic pressure. In 2018, Pakistan received $2 billion in deposits, while another $1 billion deposit was provided in 2023 to strengthen foreign exchange reserves and maintain economic confidence.
In addition, Pakistan had taken a $450 million loan from the UAE nearly three decades ago, which formed part of the broader financial obligations settled through the recent repayment process. Officials confirmed that the combined value of these deposits and loans totalled $3.45 billion, all of which has now been fully returned.
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Authorities said the successful settlement demonstrates Pakistan’s commitment to meeting international financial obligations and maintaining strong economic cooperation with the United Arab Emirates. They added that completing the repayment also reflects improved financial management by the central bank while strengthening long-standing economic ties between the two countries.