KARACHI: The government of Pakistan has successfully repaid a deposit of USD 1 billion to the Abu Dhabi Fund for Development on April 23, 2026, marking the completion of its repayment obligations to the United Arab Emirates (UAE).
According to the State Bank of Pakistan (SBP), the current payment follows the settlement of deposits amounting to USD 2.45 billion repaid last week. With this, Pakistan has fully returned a total of USD 3.45 billion in deposits previously placed by the UAE to support the country’s external account.
Of the total deposits, around USD 2 billion had been placed in 2018, while an additional USD 1 billion was received in 2023 to support Pakistan’s external account and help maintain foreign exchange reserves at levels required by international lenders.
READ MORE: Pakistan has repaid $2bn to UAE, confirms SBP official
These deposits had been rolled over, over the past several years; however, the UAE opted to seek repayment this time instead of extending them further. Pakistan has since settled the amount, supported by a fresh USD 3 billion deposit from Saudi Arabia received in two tranches earlier this month.
In addition to the Saudi inflows, Pakistan also raised USD 750 million through the issuance of a three-year Eurobond last Friday at competitive terms under its Global Medium-Term Note (GMTN) programme, aimed at bolstering foreign exchange reserves.
Repayments to the UAE were scheduled in phases, including around USD 450 million on April 11, USD 2 billion on April 17,
and USD 1 billion due on April 23. Pakistan has successfully met all these obligations on time.
Overall, Pakistan was scheduled to repay around USD 5 billion in external debt during April 2026, posing a significant financial test as these outflows account for nearly one-third of the SBP’s foreign exchange reserves. A major portion of these obligations includes the successful redemption of a USD 1.3 billion Eurobond on April 8, along with USD 3.5 billion in repayments to the UAE.
Copyright Business Recorder, 2026
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