Pakistan has repaid two billion dollars to the United Arab Emirates, according to the State Bank spokesperson. The amount was held as a safe deposit in Pakistan’s account. The repayment comes amid shifting international financial conditions and growing fiscal pressure.
Officials said the UAE had recently requested early return of the funds due to changing global circumstances. The decision was taken following consultations between financial authorities in Pakistan. The move reflects ongoing adjustments in external financing arrangements.
Read more: Pakistan faces financing shift after UAE loan
Sources in the Ministry of Finance said Pakistan was paying six percent interest on the deposit. The UAE had previously been rolling over the amount on an annual basis. In December 2025, the rollover period was shortened first to one month and then two months.
Officials noted that the repayment was part of broader financial management decisions. The transaction highlights Pakistan’s reliance on external deposits for foreign exchange stability. Authorities did not immediately comment on alternative arrangements after the repayment.
Read more: Pakistan in talks with China and KSA to repay UAE loan: report
Separately, reports suggest other Gulf partners may extend financial support to Pakistan. However, no official confirmation has been issued regarding new inflows. The situation continues to evolve as Pakistan manages external financing needs.