Pakistan clears $3.45 billion UAE deposits with final $1 billion repayment, confirms SBP 

Karachi (Web Desk): The State Bank of Pakistan (SBP) on Friday announced that it has cleared another $1 billion payment to the Abu Dhabi Fund for Development (ADFD), thereby concluding the full repayment of $3.45 billion in deposits provided by the UAE after it had already settled $2.45 billion a week earlier.

Sharing the update on X, the central bank noted that the most recent transaction was completed on April 23, confirming that all outstanding UAE deposits had now been returned. “This completes the repayment of total deposits of $3.45 billion to UAE,” the SBP said.

Earlier, on April 18, the bank had revealed that $2 billion had been paid back to the UAE, with an SBP spokesperson explaining that the funds had been held with the central bank as a secure placement.

These repayments come at a challenging time for Pakistan’s external account, as the country continues to navigate pressure on its financing needs. Analysts expect the gap to widen further following the outflow linked to UAE deposits, along with an added 6% interest cost.

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

Meanwhile, Pakistan has recently met $1.43 billion in foreign debt obligations, which included a $1.3 billion Eurobond repayment.

The development comes after an arrangement with Saudi Arabia to extend the tenure of a separate $3 billion deposit held by the SBP. The central bank had also indicated earlier this month that it received another $2 billion from the kingdom, effective April 15, 2026.

Finance Minister Muhammad Aurangzeb had earlier pointed out that the government is weighing different funding options, including Eurobonds, support from friendly countries, and commercial borrowing, to offset the UAE facility and maintain foreign exchange reserves.

“All options are on the table,” Aurangzeb said when asked whether the government was in talks with Saudi Arabia for a loan that could replace the UAE facility.

While speaking on the sidelines of meetings organised by the International Monetary Fund (IMF) and the World Bank, he expressed confidence that Pakistan would be able to handle its debt repayments, adding that reserves currently cover around 2.8 months of imports. He emphasised that keeping reserves at this level would be “an important aspect of our overall macro stability as we go forward”.

“We are looking at Eurobond, we are looking at Islamic sukuk, we are looking at dollar-settled rupee-linked bonds,” Aurangzeb said, adding that Pakistan expected to issue Eurobonds this year and was also exploring commercial loans.

He further noted that the economic impact of the ongoing Middle East conflict requires Pakistan to think about establishing a strategic petroleum reserve and speeding up the transition toward renewable energy sources.

Aurangzeb added that Pakistan has not yet approached the IMF to revise or expand its $7 billion programme in light of the regional situation, though he said it remains an option depending on how conditions evolve in the coming weeks.

The IMF board is expected to approve the next tranche soon, which could release just under $1.3 billion under the Extended Fund Facility and the Resilience and Sustainability Facility.