Pakistan Repays $3.45 Billion in UAE Deposits and Loans to State Bank

The State Bank of Pakistan (SBP) on Wednesday confirmed it has completed the repayment of loans totaling $3.45 billion to the United Arab Emirates. The settlement comes as Pakistan manages a series of debt obligations amid its broader economic stabilization program. Debt Repayment Details According to data released by the SBP, the total repayment includes $2 billion in deposits and approximately $1.45 billion in commercial loans. These funds were part of a financial support package intended to bolster Pakistan\'s foreign exchange reserves. The central bank indicated that the repayment was handled through current account inflows and did not result in a significant depletion of existing reserves. The UAE has historically provided significant financial liquidity to Pakistan through the placement of deposits at the central bank. This specific $3.45 billion repayment marks a scheduled exit from short-to-medium-term liabilities that were previously rolled over during periods of heightened fiscal pressure in Islamabad. Impact on Foreign Reserves The timing of the repayment is critical as Pakistan continues to work under the framework of the International Monetary Fund (IMF) and seeks to…