Pakistan repays UAE loan in full, closing a major financial chapter as the State Bank confirmed the return of $3.45 billion to the United Arab Emirates. The latest payment of $1 billion, made on April 23, completed the process after $2.45 billion had already been repaid earlier.
Officials said the deposits were held with the central bank and have now been cleared entirely. The update came through an official statement, confirming that Pakistan repays UAE loan as part of its ongoing financial commitments.
This development comes at a time when the country faces pressure on its external finances. The repayment, along with interest costs, is expected to widen the financing gap. Still, authorities appear confident about managing the situation.
Pakistan has also cleared other obligations recently. These include $1.43 billion in external debt, with a major portion linked to a Eurobond repayment. The government is now exploring fresh options to maintain stability in reserves.
At the same time, Pakistan secured some relief. Saudi Arabia agreed to extend the term of a $3 billion deposit, while an additional $2 billion support also came in earlier this month. These moves are expected to ease short-term pressure.
Finance Minister Muhammad Aurangzeb said the government is reviewing multiple financing options. These include Eurobonds, Islamic sukuk, and commercial borrowing. He added that Pakistan repays UAE loan while also preparing new strategies to support foreign reserves.
He noted that reserves currently cover nearly 2.8 months of imports, which remains a key benchmark for stability. The government aims to maintain or improve this level in the coming months.
Officials are also watching global developments closely. Rising tensions in the Middle East could impact economic planning. In response, Pakistan is considering building strategic petroleum reserves and speeding up the shift to renewable energy.
For now, the country continues to meet its obligations while keeping all financing options open. The fact that Pakistan repays UAE loan on schedule sends a signal of commitment, even as economic challenges remain.