Pakistan Clears $2Bn UAE Debt As Saudi Extends $3Bn Deposit Term

Pakistan has reportedly repaid $2 billion owed to the United Arab Emirates, according to the State Bank of Pakistan (SBP). The announcement comes soon after Saudi Arabia deposited $2 billion as part of a broader $3 billion support package into Pakistan’s central bank reserves, structured as a safe deposit arrangement. The SBP spokesperson confirmed the transaction, underscoring ongoing financial coordination with Gulf partners. The developments highlight shifting financial flows between Pakistan and key Middle Eastern allies amid evolving regional and economic pressures. Earlier reports also indicated that the UAE had sought the return of funds amid heightened West Asia tensions, while Saudi Arabia has extended the maturity period of its deposit, providing Islamabad additional financial flexibility.