Pakistan has repaid a substantial $3.45 billion debt to the UAE, marking a significant financial maneuver as the country faces pressing economic challenges.
The repayment, confirmed by the
State Bank of Pakistan, was completed on April 23, 2026, just days after Pakistan's government decided to fulfill the UAE's demand amid rising geopolitical tensions in the Middle East.
As stated, the UAE requested an immediate loan return due to recent developments following the
U.S.-Israel war on Iran. Despite the heavy toll on its foreign exchange reserves, a senior official highlighted that the decision was made out of a desire to uphold
national dignity.
Pakistan's recent difficulties with negotiating a rollover of debt with the Gulf state for the first time in seven years led to this rapid repayment. The latest financial aid from
Saudi Arabia, which includes a fresh $3 billion in assistance, is also a critical lifeline during this time.
With domestic resources stretched thin, Prime Minister
Shehbaz Sharif emphasized that seeking external loans has often forced Pakistan to compromise its sovereignty and self-respect.
Currently, Pakistan's foreign reserves are reported at
USD 16.4 billion, which it aims to boost to USD 18 billion by the fiscal year's end, thus framing this moment as a pivotal juncture for its financial stability.
Sources: 
Pakistan has repaid a total of $3.45 billion owed to the UAE, as confirmed by the State Bank of Pakistan. The decision, driven by national dignity amidst looming financial concerns, was taken following the UAE's demand for the immediate return of the funds amid regional tensions.
