Pakistan has successfully repaid a $2 billion loan to the United Arab Emirates (UAE). The State Bank of Pakistan (SBP) confirmed the payment on Saturday, April 18, 2026. The money was held as a safe deposit with the central bank and has now been returned along with interest.
This deposit from the UAE had helped Pakistan during difficult economic times. It strengthened the country’s foreign exchange reserves and supported stability. The UAE had been rolling over the amount for several years, usually on an annual basis. Pakistan was paying around 6 percent interest on it.
The repayment shows Pakistan’s commitment to meeting its financial promises on time. It helps the country maintain good relations with friendly nations and improves its image as a reliable borrower.
The SBP spokesperson said the funds were transferred after the deposit matured. Officials did not share details about any new deposit arrangement or renewal with the UAE. Finance Minister Muhammad Aurangzeb said the government is looking at other options, such as Eurobonds and Islamic sukuk, to keep reserves steady.
Pakistan has been managing its external debt carefully. In recent weeks, the country also repaid other international obligations. This timely payment to the UAE is seen as a positive step toward economic responsibility.
The move comes as Pakistan works closely with the International Monetary Fund (IMF) and continues to build stronger reserves for the future. Friendly countries like the UAE and Saudi Arabia have supported Pakistan in the past, and such repayments help keep those important ties strong.
