The State Bank of Pakistan has confirmed that the government has returned $2 billion to the United Arab Emirates. Officials said this amount was earlier placed with Pakistan’s central bank as a safe deposit.
According to the SBP spokesperson, the funds were not a loan in the traditional sense but were held to support Pakistan’s foreign reserves. The repayment now signals a change in financial arrangements between the two countries.
This development came shortly after Pakistan signed another important agreement with Saudi Arabia. Under this deal, the maturity period of a $3 billion deposit placed by Saudi authorities has been extended.
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Earlier in the same week, Pakistan had also received $2 billion from Saudi Arabia, which helped strengthen the country’s reserves temporarily.
Experts say such deposits from friendly countries play a key role in stabilizing Pakistan’s economy, especially during times of financial stress. However, returning large amounts can also put pressure on reserves if not balanced properly.
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The back-to-back financial moves show how Pakistan is managing its external accounts through support from regional partners like the UAE and Saudi Arabia.
Officials have not shared further details about whether new deposits will replace the returned amount or how it will impact reserves in the coming weeks.