Karachi: Pakistan’s central bank has said it expects to clear the remaining USD 1.5 billion from a USD 3.5 billion loan taken from the United Arab Emirates by April 23.

The statement from the State Bank of Pakistan comes shortly after the country repaid USD 2 billion to the UAE. This repayment followed a USD 2 billion deposit made by Saudi Arabia as part of its USD 3 billion financial support package to Pakistan.

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A spokesperson for the SBP told that the USD 2 billion repayment was made after deposits held with the central bank reached maturity.

“Pakistan has repaid USD 2 billion of a USD 3.5 billion fund, which was placed by the United Arab Emirates with the State Administration of Foreign Exchange deposit with the central bank,” the spokesperson said.

“The amount of USD 2 billion was transferred to the UAE following the maturity of deposits held by the State Bank. The remaining amount has to be paid by April 23,” he added.

IMF support expected

The central bank indicated that foreign exchange reserves have remained stable, supported by incoming funds.

Meanwhile, Finance Minister Muhammad Aurangzeb, speaking in Washington, said Pakistan is expecting around USD 1.2 billion following a Staff Level Agreement with the International Monetary Fund.

The IMF Executive Board is scheduled to meet in mid-May in Washington to review the agreement, which could unlock the next tranche under Pakistan’s programme.

Background of UAE support

The UAE had earlier extended USD 3.5 billion to Pakistan to help manage its balance of payments. These funds had been rolled over periodically until recently.

According to a report by Geo News, citing sources, the UAE requested early repayment of the funds amid developments in West Asia linked to the US-Israel conflict with Iran.

Saudi Arabia extends financial support

In a related move, Saudi Arabia agreed to extend the maturity period of its USD 3 billion deposit with Pakistan’s central bank.

On Thursday, the Saudi Fund for Development deposited USD 2 billion out of the USD 3 billion commitment with the SBP, strengthening the country’s foreign exchange reserves.

“The agreement, signed between the Saudi Fund for Development and the State Bank of Pakistan, provides for the extension in the maturity of a USD 3 billion deposit,” Pakistan’s Ministry of Finance said in a post on X.

Financial pressures and reserve position

Sources indicated that Pakistan has been paying around 6 per cent interest on the UAE deposit. In previous years, the UAE would typically roll over the funds annually. However, in December 2025, the extension period was shortened, first by one month and then by two months, up to April 17.

For the current fiscal year, Pakistan required rollover support of about USD 12 billion in external deposits. This includes USD 5 billion from Saudi Arabia, USD 4 billion from China and USD 3 billion from the UAE.

Official figures show that Pakistan’s foreign exchange reserves stood at USD 16.4 billion as of March 27. Authorities said this level is sufficient to cover nearly three months of imports.

The repayment to the UAE comes at a time when Pakistan continues to face pressure on its external financial position.