Pakistan has repaid its full $3.45 billion debt to the United Arab Emirates, following a recent demand from Abu Dhabi for the return of the funds. The repayment was confirmed by the State Bank of Pakistan, which stated that the final $1 billion deposit to the Abu Dhabi Fund for Development (ADFD) was returned on April 23, while $2.45 billion had already been repaid earlier in the week.
The UAE had extended these deposits to Pakistan to help support its balance of payments during a period of financial strain. With this final transaction, Islamabad has now fully cleared all outstanding deposits owed to the Gulf nation.
The development comes at a sensitive time for Pakistan’s economy, which continues to face pressure from external debt obligations and foreign exchange challenges. The repayment is being seen as a move to maintain financial credibility and preserve diplomatic and economic ties with the UAE.
