On April 24, 2026, Pakistan completed the repayment of a significant $3.45 billion deposit to the United Arab Emirates. This milestone was marked by the final payment of $1 billion, fulfilling the UAE’s request to retrieve the funds that were deposited into the State Bank of Pakistan in 2018 to bolster its foreign exchange reserves.
Details of the Payment
The State Bank of Pakistan (SBP) announced that it had repaid a $1 billion installment to the Abu Dhabi Development Fund. This repayment was part of a broader transaction where $2.45 billion was settled the previous week. In a statement shared on platform X, the SBP noted that the total liquid foreign reserves held by the bank stood at $20.63 billion as of April 17, 2026.
Support from Saudi Arabia
This announcement follows a recent commitment from Saudi Arabia to strengthen Pakistan’s financial stability. On April 16, 2026, Saudi Arabia pledged a new deposit of $3 billion while also extending a previous $5 billion deposit. This initiative aims to support the economic stability of Islamabad, according to the Saudi Press Agency (SPA). Just days before, the State Bank confirmed it received an additional $1 billion from the Saudi Ministry of Finance, with a due date of April 20, 2026.
Strategic Impact on Foreign Reserves
The completion of the $3.45 billion deposit repayment to the UAE is viewed as a critical step for Pakistan’s economic landscape. The timely settlement not only reinforces Pakistan’s commitment to its financial obligations but also reflects a robust strategy for managing foreign reserves. With the international financial community closely monitoring Pakistan’s economic developments, the recent influx of funds from Saudi Arabia, alongside the concluded UAE deposit, is likely to provide the much-needed support for stabilizing the country’s economy.
This repayment represents a strategic financial maneuver, ensuring that Pakistan can navigate its economic challenges while maintaining diplomatic relationships with key allies. As the nation moves forward, these financial arrangements will play a vital role in shaping its economic future.