The State Bank of Pakistan (SBP) said on Friday it had repaid $1 billion to the Abu Dhabi Fund for Development (ADFD), completing the repayment of total UAE deposits worth $3.45 billion.
In a post on X, the central bank said the latest payment was made on April 23, marking the full repayment of deposits placed by the UAE.
"This completes the repayment of total deposits of $3.45 billion to UAE," the SBP said, following the settlement of $2.45 billion last week.
Earlier, on Saturday, the SBP had confirmed the return of $2 billion in deposits to the UAE, which were held with the central bank as a safe deposit.
The repayments come amid pressure on Pakistan’s external financing position, with the gap likely to widen following the return of UAE deposits along with a 6% interest payment.
Pakistan has also recently repaid $1.43 billion in external debt, including a $1.3 billion Eurobond, adding to strain on foreign exchange reserves.
The development follows an agreement with Saudi Arabia to extend the maturity of a $3 billion deposit placed with the SBP, while the central bank earlier this month said it received $2 billion from the kingdom with a value date of April 15.
Finance Minister Muhammad Aurangzeb said last week Pakistan was exploring multiple options to replace the UAE facility and support reserves, including Eurobonds, Islamic sukuk and commercial loans.
“All options are on the table,” Aurangzeb said, adding that reserves currently cover around 2.8 months of imports — a level he described as critical for macroeconomic stability.
He added that the government had not yet sought changes to its $7 billion IMF programme, but said that remained a possibility depending on how conditions evolve.
Pakistan has achieved 14 of the 17 quantitative performance and indicative benchmarks set under the IMF programme for end-December 2025.
The IMF staff has apprised the Washington-based lender’s Executive Board and shared a detailed report on the basis of which the Executive Board is likely to consider approval of the fourth tranche worth $1.2 billion in May 2026.
