Pakistan Repays $3.45 Billion in Deposits to UAE Following SBP Confirmation

The State Bank of Pakistan (SBP) on Wednesday confirmed the repayment of $3.45 billion in deposits to the United Arab Emirates. The settlement comes as Pakistan manages its external debt obligations amid ongoing fiscal stabilization efforts and IMF-mandated structural reforms. Debt Settlement Details According to official data released by the SBP, the $3.45 billion sum was part of a larger pool of bilateral deposits held by the UAE with Pakistan’s central bank. These deposits, often rolled over to provide balance-of-payments support, are critical to Pakistan's foreign exchange reserve levels. The confirmation follows recent discussions between technical teams from both nations regarding the schedule of repayments and economic benchmarks. The central bank stated that these payments were executed in accordance with the prior agreement with the UAE authorities. Financial analysts indicate that the successful transfer demonstrates Pakistan's current capacity to meet short-term debt obligations, despite being under a $7 billion Extended Fund Facility (EFF) program with the International Monetary Fund. Impact on Foreign Exchange Reserves While the repayment reduces Pakistan’s total…