Islamabad, April 24, 2026 – Pakistan has fully repaid $3.45 billion in deposits to the United Arab Emirates, with the State Bank of Pakistan (SBP) confirming the final $1 billion payment to the Abu Dhabi Fund for Development (ADFD) on April 23. The payment marks the completion of a two-phase repayment, following the return of $2.45 billion last week.
The central bank announced the development in an official statement, noting that the UAE deposits—previously held as financial support—have now been settled in full, including an estimated 6% interest cost. The move comes at a time when Pakistan is navigating mounting pressure on its external financing position and foreign exchange reserves.
Earlier, on April 18, authorities confirmed the repayment of $2 billion, which had been maintained with the SBP as a safe deposit. The latest transaction completes the repayment cycle, but analysts warn it could widen Pakistan’s external financing gap in the short term.
In parallel, Pakistan has also repaid $1.43 billion in other external obligations, including a $1.3 billion Eurobond maturity. Despite these outflows, officials maintain that the country’s financial position remains manageable.
To ease liquidity pressures, Saudi Arabia has agreed to extend the maturity of its $3 billion deposit with Pakistan. Additionally, the country recently received $2 billion from the kingdom, providing temporary support to foreign exchange reserves.
Finance Minister Muhammad Aurangzeb said the government is actively exploring multiple financing avenues to replace the UAE facility and stabilize reserves. These include issuing Eurobonds, Islamic sukuk, and dollar-denominated instruments, as well as securing commercial loans.
“All options are on the table,” Aurangzeb said, emphasizing that maintaining foreign exchange reserves at around 2.8 months of import cover remains critical for macroeconomic stability.
He added that Pakistan is preparing to tap international capital markets later this year while also evaluating alternative funding strategies amid global economic uncertainty.
The minister also highlighted risks stemming from geopolitical tensions in the Middle East, suggesting the need for a strategic petroleum reserve and accelerated investment in renewable energy.
Meanwhile, Pakistan has not yet sought revisions to its $7 billion IMF program, though officials say adjustments remain possible. The IMF Executive Board is expected to approve the next tranche—just under $1.3 billion—next month, offering further financial support under the Extended Fund Facility and Resilience and Sustainability Facility.