Islamabad: The remaining $2.45 billion had been repaid earlier, concluding the total settlement of $3.45 billion owed to the UAE.
The repayment comes shortly after Pakistan secured $3 billion in financial assistance from Saudi Arabia, received in two tranches, with the second installment of $1 billion arriving on April 21. The inflow provided temporary relief as Islamabad moved to meet its external obligations.
The UAE’s request for immediate repayment followed rising geopolitical tensions in West Asia linked to the US-Israel war on Iran, prompting a reassessment of financial exposures in the region.
The deposits were originally extended by the UAE in 2019 as part of financial support aimed at stabilising Pakistan’s balance of payments. However, in March this year, Pakistan failed to secure a rollover of the $3.5 billion facility from the UAE, the first such instance in seven years, raising concerns over near-term financing gaps.
Despite the repayment, Pakistan’s foreign exchange reserves remain under pressure, even as the country continues broader economic stabilisation efforts under reforms backed by the International Monetary Fund.