Pakistan completes $3.45 billion UAE repayment with 6% interest

Pakistan has repaid a further $1 billion to the United Arab Emirates, taking the total amount returned to $3.45 billion, according to the State Bank of Pakistan, 24NewsHD TV channel reported on Friday.
The central bank said the latest payment was made to the Abu Dhabi Fund, following an earlier repayment of $2.45 billion last week. 
The funds were part of external financial support provided by the UAE in 2019 to help stabilise Pakistan’s balance of payments.
The development follows earlier reports that Pakistan had decided to return $3.5 billion in debt to the UAE before the end of April after Abu Dhabi requested repayment of the matured deposits.

State Bank of Pakistan repaid deposit of US$ 1 billion to Abu Dhabi Fund for Development (ADFD) UAE on 23April2026. Deposits of $2.45 billion were repaid last week. This completes the repayment of total deposits of $3.45 billion to UAE.

— SBP (@StateBank_Pak) April 24, 2026

The 24NewsHD TV channel reported on April 4, 2026 that a senior official said that Pakistan had decided to return $3.5 billion in debt to the UAE before the end of this month. 
According to the official, Abu Dhabi had sought the immediate return of the amount. These funds were part of external financing support extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments. 
In a statement, FO Spokesperson Tahir Andrabi said the deposits were placed under bilateral commercial agreements. He said that pursuant to mutually agreed terms, the government, through the State Bank of Pakistan (SBP), was now returning the matured deposits to the UAE. 
This is a routine financial transaction, and any attempt to portray it otherwise is erroneous and misleading, FO spokesman said. 
The senior Pakistani official said on Friday that the decision to return the debt had ended the uncertainty surrounding the deposits placed through the Abu Dhabi Fund for Development, which were rolled over multiple times since 2019. 
In recent months, the extensions had become as short as a month long, reflecting Emirati unease over the continuation of the arrangement.
Under its ongoing International Monetary Fund (IMF) programme, Pakistan is required to secure around $12.5 billion in rollovers from three key partners — China, Saudi Arabia and the UAE — to maintain reserve levels and meet external financing needs. The UAE deposits are, therefore, a critical part of this arrangement. 
The latest available data shows Pakistan’s central bank reserves at about $16.3 billion. A repayment of $3 billion would reduce these holdings sharply by 18%, significantly lowering the external buffer and import cover.
The Ministry of Finance, through a post on X, said it was continuously monitoring and managing Pakistan’s external flows in order to ensure stable foreign exchange reserves. 
The 24NewsHD TV channel also reported that the amount, previously held in Pakistan’s account as a safe deposit, will be repaid to Abu Dhabi following a request from the Emirati authorities. 
Officials in the Ministry of Finance of Pakistan confirmed that Pakistan had been paying an interest rate of 6 percent on the deposited amount. 
The arrangement, initially structured on a rollover basis, had allowed the funds to remain within Pakistan’s reserves for a defined period. 
The UAE had earlier extended the $2 billion deposit for shorter durations instead of the usual annual rollover which has already been paid by Pakistan some days ago. 
At one point, the facility was rolled over for one month, followed by a further two-month extension, pushing the repayment deadlines to mid and late April.
On April 18, Pakistan has already repaid a $2 billion loan to the United Arab Emirates (UAE).

Reporter: Waqas Azeem