Pakistan Repays $3.45 Billion in Matured Deposits to UAE

The State Bank of Pakistan (SBP) confirmed it has repaid $3.45 billion in matured foreign currency deposits to the United Arab Emirates. The settlement comes as Pakistan manages its external debt obligations amid ongoing fiscal stabilization efforts. Repayment Schedule and Debt Management The central bank stated that the repaid amount was part of financial support previously deposited by the UAE to bolster Pakistan’s foreign exchange reserves. While the SBP did not disclose the specific dates of each transaction, the confirmation indicates the clearance of these high-value liabilities from the national balance sheet. Debt servicing remains a critical focus for Islamabad. Despite the multi-billion dollar outflow, Pakistan’s foreign exchange reserves have recently shown signs of stabilization, supported by inflows from multilateral lenders and bilateral rollovers from other regional partners. Regional Financial Stability The UAE has historically acted as a key liquidity provider for Pakistan, offering deposits to assist with balance-of-payment challenges. The successful repayment of the $3.45 billion is viewed by financial analysts as a necessary step for Pakistan to maintain its…