State Bank of Pakistan (SBP) on Saturday confirmed that Pakistan has returned a $2 billion deposit to the United Arab Emirates, describing it as funds previously held with central banks as a safe deposit arrangement.
According to the SBP spokesperson, the repayment marks a significant movement in Pakistan’s external financing position. The development comes shortly after Pakistan and Saudi Arabia agreed to extend the maturity of a $3 billion deposit placed with the SBP by the Saudi Fund for Development.
Separately, the central bank earlier confirmed receipt of another $2 billion from Saudi Arabia, effective April 15, 2026.
Officials said Pakistan has also recently repaid $1.43 billion in external debt, including a $1.3 billion Eurobond, as part of broader debt management obligations.
Finance Minister Muhammad Aurangzeb said the government is exploring multiple financing options, including Eurobonds, commercial loans, Islamic sukuk, and rupee-linked instruments to replace maturing facilities and stabilise foreign reserves.
He said Pakistan’s reserves currently cover around 2.8 months of imports and maintaining this level is critical for macroeconomic stability. Aurangzeb added that while the government has not requested changes to its $7 billion IMF programme, it remains an option depending on economic conditions.
Authorities indicated that rising global uncertainty, including geopolitical tensions, is increasing pressure on Pakistan’s external financing requirements, prompting consideration of new borrowing instruments and energy security measures.