KARACHI: The State Bank of Pakistan (SBP) has confirmed that the government has repaid $2 billion to the United Arab Emirates (UAE), marking a significant development in ongoing external debt management arrangements between the two countries.
According to an SBP spokesperson, the amount had been placed with the central bank as a safe deposit mechanism before its return. The confirmation comes amid a series of external financial movements involving Pakistan’s obligations to friendly countries and international financial instruments.
The repayment is part of a broader commitment, as the UAE had sought the return of a total $3.5 billion from Pakistan. With the $2 billion tranche now settled, a further $1.5 billion payment remains due on April 23, keeping financial planners focused on near-term external outflows.
The central bank stated that the repayment would not disrupt Pakistan’s foreign exchange reserves, with officials maintaining that the country’s external position remains stable.
Reports indicated that arrangements for scheduled external payments had already been finalised in advance to ensure smooth settlement.
In parallel developments, Pakistan recently received $2 billion from Saudi Arabia, providing additional support to its foreign currency reserves. This inflow arrived just two days prior to the UAE repayment confirmation, reflecting continued bilateral financial support from key regional partners.
Separately, Pakistan also raised $500 million through the issuance of Eurobonds a day earlier, adding further liquidity to its external accounts. These combined inflows and outflows highlight an active period in Pakistan’s external financing operations, with multiple instruments being utilised to manage obligations and support reserve stability.
The SBP reiterated that despite the repayment to the UAE, the country’s dollar reserves remain unaffected in overall stability terms.
