Pakistan Settles $3.45 Billion Debt to UAE Amid Financial Turbulence

Pakistan has repaid $3.45 billion in debt to the United Arab Emirates, completing the transaction on Thursday, as confirmed by the State Bank of Pakistan. This marks a rare event, following an unsuccessful negotiation in March to roll over a $3.5 billion facility with the UAE.

Pakistan has returned the full $3.45 billion it owed in debt to the United Arab Emirates, according to a confirmation by the State Bank of Pakistan on Friday.

The repayment was finalized on Thursday, with $1 billion paid back to the Abu Dhabi Fund for Development, UAE, on April 23, 2026, and the remaining $2.45 billion cleared last week.

This financial maneuver follows closely on the heels of a $3 billion financial aid package from Saudi Arabia and reflects ongoing challenges as Pakistan strives to stabilize its balance of payments amid external financing risks and volatile global energy markets.