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

The State Bank of Pakistan (SBP) has completed the repayment of loans totaling $3.45 billion to the United Arab Emirates, confirming the settlement of significant bilateral financial obligations. The central bank verified that the matured deposits were returned to the UAE as part of the country’s debt management schedule. Debt Settlement Details The repayment process involved several tranches of matured deposits that had been placed by the UAE with the SBP to bolster Pakistan's foreign exchange reserves in previous years. According to central bank data, the total figure of $3.45 billion represents a substantial portion of the bilateral financial assistance provided by the UAE government. Following these payments, the SBP indicated that the UAE has rolled over its remaining $2 billion deposit for an additional year. This extension is intended to maintain stability in Pakistan’s external account while the country continues to navigate its current International Monetary Fund (IMF) program and broader economic stabilization efforts. Impact on Foreign Reserves Despite the multi-billion dollar outflow, Pakistan's liquid foreign exchange reserves remained at approximately $14.38 billion…