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Pakistan Says It Will Repay Matured Loan Deposits to UAE

Tooba Khan
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⚡ Quantum Brief
Pakistan will repay matured loan deposits to the UAE, a move expected to deplete its foreign reserves. The repayment follows bilateral commercial agreements originally aimed at stabilizing Pakistan’s economy. The funds, held by the State Bank of Pakistan, were part of UAE’s financial support to bolster Pakistan’s economic stability. Their maturity now requires repayment, adding pressure to the nation’s liquidity. The repayment was announced via a Foreign Ministry statement on April 4, 2026, confirming the transaction’s execution through the central bank. The UAE had previously extended deposits as part of broader economic cooperation, reflecting its role in supporting Pakistan’s financial resilience during crises. This repayment underscores Pakistan’s ongoing challenges in managing external debt and maintaining reserve levels amid economic instability.
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Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the worldAmericas+1 212 318 2000EMEA+44 20 7330 7500Asia Pacific+65 6212 1000The State Bank of Pakistan in Karachi, Pakistan.Pakistan will return matured loan deposits to the United Arab Emirates, in a move that will strain the South Asian nation’s reserves. The deposits “were placed under bilateral commercial agreements, demonstrating the UAE’s strong support for Pakistan’s economic stability and prosperity,” according to a statement by the Foreign Ministry postedBloomberg Terminal on X on Saturday. They have now matured and will be returned through the State Bank of Pakistan, it noted.

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Source: Bloomberg Markets

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