Pakistan Completes $3.45 Billion Loan Repayment to UAE

Post by : Bianca Suleiman

Pakistan has successfully fulfilled its financial commitment by repaying a total of USD 3.45 billion to the United Arab Emirates (UAE), as officially announced by the State Bank of Pakistan (SBP) on Friday.

The central bank clarified that the concluding payment of USD 1 billion occurred on April 23, 2026, while the preceding USD 2.45 billion was cleared just last week. This action has fully settled all outstanding deposits owed to the UAE.

These loans were originally provided as balance-of-payments assistance and had been extended multiple times since 2018. Earlier in the year, Pakistan transitioned repayment terms from annual payments to monthly installments before ultimately deciding to pay off the total amount.

To cover this repayment schedule, Pakistan has utilized recent financial inflows, including a USD 2 billion deposit from Saudi Arabia, part of a larger USD 3 billion support initiative.

This repayment alleviates pressures on Pakistan’s external debt and strengthens its economic governance under the International Monetary Fund (IMF) program. With foreign exchange reserves previously estimated at around USD 16 billion, Pakistan had the necessary liquidity to manage the repayment.

Initial reports had indicated that Pakistan planned to repay approximately USD 3.5 billion by the end of April after a request from the UAE for an early repayment. The State Bank confirmed the actual repayment of USD 3.45 billion, suggesting that a previously overdue sum of USD 450 million may not have been accounted for in the latest settlement.

This development is a crucial milestone in Pakistan’s efforts to stabilize its economy and manage external liabilities amidst persistent regional and financial difficulties.

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