The State Bank of Pakistan (SBP) on Saturday confirmed that the government has returned $2 billion in debt to the United Arab Emirates (UAE).
The SBP spokesperson said that the amount was kept with the central banks as a safe deposit. The development came a day after Pakistan and Saudi Arabia signed an agreement to extend the maturity of Riyadh’s $3 billion deposit placed with the SBP. The agreement provides for the extension of the maturity of a $3 billion deposit placed by SFD with the SBP.
Separately, the central bank, earlier this week, had said it received $2 billion from the kingdom “in the value date of April 15, 2026″.
However, Pakistan’s external financing gap is likely to expand after the government replayed $2 billion in deposits to the UAE, along with a 6% interest payment.
