Karachi, April 24, 2026 — The State Bank of Pakistan (SBP) on Friday announced it has repaid $1 billion to the Abu Dhabi Fund for Development (ADFD), completing the full return of $3.45 billion in deposits placed by the United Arab Emirates.
Iranian FM Abbas Araghchi to Visit Islamabad Amid Prospects of US-Iran Talks
In a statement posted on X, the central bank said the latest repayment was made on April 23, marking the conclusion of all outstanding UAE deposits. The development follows last week’s settlement of $2.45 billion.
Earlier, on April 18, the SBP had confirmed that $2 billion had been returned to the UAE, noting that the funds were held with the central bank as safe deposits.
The repayments come at a time when Pakistan faces pressure on its external financing position, with the financing gap expected to widen after the outflows, along with interest payments estimated at around 6%.
Pakistan has also recently repaid $1.43 billion in external debt, including a $1.3 billion Eurobond, as it navigates a challenging economic environment.
The development follows a separate agreement with Saudi Arabia to extend the maturity of a $3 billion deposit held with the SBP. The central bank also confirmed receiving $2 billion from the kingdom earlier this month, with a value date of April 15, 2026.
Finance Minister Muhammad Aurangzeb said Pakistan is exploring multiple financing options to replace the UAE facility and maintain foreign exchange reserves. These include Eurobonds, loans from friendly countries, and commercial borrowing.
Speaking on the sidelines of meetings held by the International Monetary Fund and the World Bank, Aurangzeb stated that Pakistan remains capable of meeting its debt obligations, with reserves currently covering around 2.8 months of imports.
He added that maintaining this level is crucial for macroeconomic stability, while also highlighting plans to issue Eurobonds, Islamic sukuk, and dollar-settled rupee-linked bonds.
Amid the economic impact of the ongoing Middle East conflict, Aurangzeb emphasized the need for a strategic petroleum reserve and a faster transition toward renewable energy.
He further noted that Pakistan has not yet sought revisions to its $7 billion IMF program but may consider adjustments depending on evolving conditions. The IMF board is expected to approve the next tranche soon, potentially unlocking nearly $1.3 billion under its lending facilities.
