Pakistan will repay a $2 billion deposit to the United Arab Emirates by the end of April 2026. Official sources in the Ministry of Finance confirmed that the amount will be returned to Abu Dhabi as requested by the UAE.
The deposit was placed with the State Bank of Pakistan by the Abu Dhabi Fund for Development. It served as a safe deposit facility to support Pakistan’s foreign exchange reserves during difficult times. Pakistan had been paying around 6% interest (later 6.5%) on this amount.
The facility was originally rolled over annually, but in recent months, it received only short extensions, including one-month and two-month rollovers.
In February 2026, Deputy Prime Minister and Foreign Minister Ishaq Dar had assured that the UAE would roll over the deposit to support Pakistan’s economy. However, due to the current international financial situation and ongoing geopolitical tensions in the Middle East, the UAE has now asked for immediate repayment.
This repayment forms part of Pakistan’s efforts to manage its external debt obligations. The country has been facing pressure on its foreign reserves amid high global oil prices, a large fiscal deficit, and repeated fuel price hikes.
The move is expected to reduce Pakistan’s foreign liabilities by $2 billion. Officials say the government is working to arrange the necessary funds without creating major pressure on reserves.
The development comes at a time when the country is also dealing with record fuel prices and growing public debt concerns.