The State Bank of Pakistan (SBP) has confirmed that the government has repaid $2 billion to the United Arab Emirates (UAE), following official directives.
According to the SBP spokesperson, the amount had previously been held as financial assistance in the form of deposits and has now been returned under a pre-agreed mechanism. The official described the transaction as part of routine financial obligations being fulfilled by the country.
The repayment comes at a time when Pakistan is managing significant external financing pressures and meeting its international debt commitments. Officials noted that the $2 billion payment is part of a larger $3.5 billion obligation due to the UAE this month.
Economic analysts believe that while such repayments may temporarily impact foreign exchange reserves, they also reflect Pakistan’s commitment to honoring its financial agreements, which is crucial for maintaining credibility with international lenders and investors.
The government has reiterated that all external liabilities are being managed carefully, with support from friendly countries and ongoing engagement with global financial institutions, including the IMF program.
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