The State Bank of Pakistan (SBP) has confirmed that Pakistan has repaid $2 billion to the United Arab Emirates, marking a key step in the country’s ongoing external debt management efforts.
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In a statement issued on Saturday, an SBP spokesperson said the amount had previously been held with the central bank as a safe deposit arrangement before being returned. The repayment forms part of a broader financial obligation, as the UAE had requested the return of a total $3.5 billion. Following this tranche, an additional $1.5 billion is scheduled for repayment on April 23.
Despite the outflow, the central bank maintained that Pakistan’s foreign exchange reserves remain stable and that the repayment would not disrupt the country’s external position. Officials noted that arrangements for upcoming payments had been planned in advance to ensure smooth financial management.
The repayment comes amid a series of significant financial movements. Pakistan recently received $2 billion from Saudi Arabia, providing support to its foreign currency reserves. In addition, the country raised $500 million through a Eurobond issuance, further strengthening external liquidity.
These developments highlight an active phase in Pakistan’s external financing strategy, with inflows and outflows being carefully managed to maintain macroeconomic stability and meet international obligations.
