Karachi, April 18, 2026 – Pakistan has repaid $2 billion in deposits to the United Arab Emirates (UAE), the State Bank of Pakistan (SBP) said on Saturday, as the country continues to meet its external debt obligations while managing pressure on foreign exchange reserves.
The central bank confirmed that the funds, previously held as a safe deposit with the SBP, were returned upon maturity. The UAE had rolled over similar deposits in the past on an annual basis.
The repayment comes shortly after Pakistan secured financial support from Saudi Arabia, including the rollover of a $3 billion deposit and the inflow of an additional $2 billion earlier this week, helping cushion the impact on reserves.
Despite the inflows, analysts say Pakistan’s external financing gap could widen following the UAE repayment, particularly as the government also serviced around $1.43 billion in external debt recently, including a $1.3 billion Eurobond maturity.
Finance Minister Muhammad Aurangzeb said the government is exploring multiple funding options to maintain reserve levels and meet future obligations, including issuing Eurobonds, Islamic sukuk, and securing commercial loans.
“All options are on the table,” Aurangzeb said during meetings held on the sidelines of the International Monetary Fund (IMF) and World Bank Spring Meetings, adding that maintaining adequate reserves remains critical for macroeconomic stability.
He noted that Pakistan aims to build foreign exchange reserves to around $18 billion by June, equivalent to roughly three months of import cover, in line with commitments under the IMF-supported programme.
Aurangzeb also indicated that while no formal request has yet been made to modify the $7 billion IMF programme, adjustments could be considered depending on evolving global conditions, particularly the economic impact of ongoing Middle East tensions.
The government reiterated its commitment to timely debt servicing and sustaining investor confidence through prudent fiscal and monetary management.