Pakistan repays $3.45 bn UAE debt: Did Saudi funds help Islamabad pull it off?

Pakistan has repaid a total of $3.45 billion in deposits owed to the United Arab Emirates, the State Bank of Pakistan said on Friday.

In a post on X, the central bank said it repaid a $1 billion deposit to the Abu Dhabi Fund for Development on April 23, after returning $2.45 billion last week, taking the total repayment to $3.45 billion.

“State Bank of Pakistan repaid deposit of US$ 1 billion to Abu Dhabi Fund for Development (ADFD) UAE on 23 April 2026. Deposits of $2.45 billion were repaid last week. This completes the repayment of total deposits of $3.45 billion to UAE,” State Bank of Pakistan said.

The development comes days after Pakistan received $3 billion in financial support from Saudi Arabia in two tranches.

The State Bank said $2 billion was received on April 15, followed by $1 billion on April 20.

“State Bank of Pakistan has received funds of $1 billion from Ministry of Finance, Kingdom of Saudi Arabia… This is the second tranche of the $3 billion deposit recently agreed,” it said.

The repayment follows a request from the United Arab Emirates for the immediate return of funds amid heightened geopolitical tensions in West Asia linked to the US-Israel conflict with Iran.

The deposits were part of financial assistance extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments, according to a report by Dawn.

Earlier this month, a senior official had indicated that Islamabad planned to return about $3.5 billion to the UAE before the end of April, describing the move as a step to uphold “national dignity” despite the potential drawdown in foreign exchange reserves.

In March, Pakistan failed for the first time in seven years to secure a rollover of the $3.5 billion facility from the UAE, raising concerns over near-term external financing needs.

Pakistan’s foreign exchange position remains under pressure but is part of a broader stabilisation programme backed by IMF-supported reforms.