Pakistan completes repayment of $3.45 billion to UAE

Pakistan’s central bank on Friday said it repaid $1 billion to the UAE, completing the repayment of $3.45 billion as agreed between the two countries.

The State Bank of Pakistan said in a statement on social media platform X that the South Asian country repaid $2.45 billion to the UAE last week.

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

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Pakistan was scheduled to repay the total funds to ADFD by the end of April 2026 under a bilateral deposit agreement.

The UAE had deposited funds with Pakistan to support its balance of payments. Both countries have enjoyed strong economic and cultural relations over the decades.

The State Bank of Pakistan’s liquid foreign reserves stood at $20.63 billion as of April 17, 2026.

On April 21, the State Bank of Pakistan received $1 billion from Saudi Arabia as the second tranche of a $3 billion deposit. The first tranche of $2 billion was received on April 15. This was also aimed at supporting Pakistan’s balance of payments.

Pakistan heavily relies on remittances and long-term deposits from friendly countries such as Saudi Arabia, the UAE and China.

According to State Bank data, workers’ remittances stood at $3.8 billion during March 2026. In terms of growth, remittances increased by 16.5 per cent on a month-on-month basis and registered a decline of 5.5 per cent on a year-on-year basis.

Cumulatively, workers’ remittances increased by 8.2 per cent to $30.3 billion during the July-March fiscal year 2026, compared to $28 billion received during the same period last year.

Remittances during March 2026 were mainly sourced from Saudi Arabia ($918.4 million), the UAE ($823.7 million), the UK ($587.3 million), and the US ($359.3 million).

Pakistan is also seeking $7 billion from the International Monetary Fund (IMF) to build its foreign exchange reserves.