The State Bank of Pakistan (SBP) has confirmed that the government has repaid $2 billion to the United Arab Emirates (UAE), marking a significant development in ongoing external debt management arrangements between the two countries.
According to an SBP spokesperson on Saturday, the amount had been placed with the central bank as a safe deposit mechanism before its return. The confirmation comes amid a series of external financial movements involving Pakistan’s obligations to friendly countries and international financial instruments.
The repayment is part of a broader commitment, as the UAE had sought the return of a total $3.5 billion from Pakistan. With the $2 billion tranche now settled, a further $1.5 billion payment remains due on April 23, keeping financial planners focused on near-term external outflows.