Pakistan has repaid $2 billion to the United Arab Emirates (UAE), confirming the payment by the State Bank of Pakistan (SBP) on Saturday. This is part of a broader plan to clear $3.5 billion in debt within April, with an additional $1 billion due on April 23.
Despite the large outflow, the SBP stated that this repayment would not impact the country’s foreign exchange reserves. Arrangements for external payments are in place, and the bank stressed that reserves would remain stable and obligations are being met on time.
The loan, extended by UAE in 2019 to support Pakistan’s balance of payments during economic stress, was initially scheduled for monthly repayments starting April 11 with $450 million, followed by $2 billion on April 17, and the final installment due on April 23.