KARACHI: Pakistan has repaid $2 billion to the United Arab Emirates as part of maturing deposits due this month, a central bank official said on Saturday, as the country manages external financing pressures amid ongoing debt obligations.
Pakistan is scheduled to return a total of $3.5 billion to the UAE by the end of April under bilateral deposit arrangements, a move that comes as authorities work to stabilize foreign exchange reserves with support from allies and an International Monetary Fund (IMF) program.
“I can confirm that we have made the $2 billion repayment to the UAE,” Noor Ahmed, chief spokesperson at the State Bank of Pakistan (SBP), told Arab News, without specifying the exact date of the transaction.
“For now, I can confirm this much [$2 billion repayment] only,” he said when asked about the remaining amount due.
The repayment follows earlier government statements describing the return of UAE deposits as a routine financial transaction under agreed terms, amid local media reports that had raised concerns about the impact on Pakistan’s external position.
Pakistan has in recent years relied heavily on financial support and rollovers from key partners, including Saudi Arabia and China, to maintain foreign exchange reserves required under its $7 billion IMF program.
Earlier this week, the central bank said it had received $2 billion from Saudi Arabia, providing immediate support to reserves.
Pakistan also paid $1.4 billion in Eurobond repayments this month, highlighting the pressure on the country’s balance of payments even as inflows from allies help cushion the impact.
