Pakistan Repays $3.45bn in Matured Deposits to UAE as Central Bank Clears Debt

The State Bank of Pakistan (SBP) has confirmed the repayment of $3.45 billion in matured deposits to the United Arab Emirates, marking a significant transaction in the bilateral financial relationship between the two nations. The central bank verified that the obligations were met as part of the country’s debt management and scheduled repayment cycle. Debt Settlement Details The $3.45 billion total represents the settlement of various deposit tranches that had been placed by the UAE with Pakistan’s central bank to bolster its foreign exchange reserves. While the SBP did not disclose the specific timeline of every individual payment, the confirmation indicates that these short-term liabilities have been cleared from the balance sheet. This repayment follows recent efforts by Pakistan to stabilize its external sector amid ongoing economic reforms. Impact on Foreign Reserves Despite the large-scale outflow, Pakistan’s foreign exchange reserves have recently shown relative stability due to inflows from multilateral lenders and other bilateral partners. The repayment to the UAE is viewed by market analysts as a move to reduce Pakistan's dependence on rolled-over short-term deposits.…