Islamabad

Pakistan has repaid the full USD 3.45 billion it owed to the United Arab Emirates, according to the country’s central bank.

The State Bank of Pakistan said the final repayment of USD 1 billion was made on Thursday to the Abu Dhabi Fund for Development. It added that another USD 2.45 billion had been returned last week, completing the total settlement.

The repayment came shortly after Pakistan received USD 3 billion in financial assistance from Saudi Arabia. The support reportedly arrived in two instalments, with the second tranche of USD 1 billion transferred on April 21.

Reports said the UAE had sought early repayment amid uncertainty in West Asia following the recent conflict involving the United States, Israel and Iran.

The funds were originally extended by the UAE in 2019 to help stabilise Pakistan’s balance of payments. Earlier this year, Islamabad was unable to secure an extension of the USD 3.5 billion facility, raising concerns over short-term financing needs.

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While Pakistan’s foreign exchange reserves remain under pressure, the country continues broader economic reforms backed by the International Monetary Fund. Analysts say external financing risks remain a key challenge, especially amid volatile energy prices and tighter global markets.