Pakistan Repays $3.45 Billion UAE Debt After Receiving Saudi Financial Aid

The State Bank of Pakistan has cleared its $3.45 billion debt to the UAE, including a final $1 billion installment, following financial support from Saudi Arabia. Despite this repayment, Pakistan remains burdened with a total external debt of approximately $130 billion, primarily owed to China and the IMF.

The State Bank of Pakistan (SBP) has announced the full repayment of its debt to the United Arab Emirates (UAE). 45 billion owed to the UAE. Despite this significant repayment, the country continues to grapple with a massive external debt totaling approximately $130 billion.

Details of the Debt Repayment to UAE

According to the statement issued by the State Bank of Pakistan, the entire debt was settled before the stipulated deadline. 45 billion loan, which Pakistan had originally acquired in 2019.45 billion had been paid earlier, the final installment of $1 billion has now been cleared. This final payment was made possible after Pakistan received financial assistance from Saudi Arabia two days ago.

Reasons Behind UAE's Immediate Demand for Repayment

The UAE's decision to demand immediate repayment is linked to several geopolitical factors:

Pakistan's Current External Debt Status

45 billion debt to the UAE has been settled, Pakistan's overall financial liability remains high at nearly $130 billion. China remains Pakistan's largest creditor; according to 2023 data, Pakistan owes $69 billion to China. On top of that, Pakistan owes approximately $10 billion to Saudi Arabia. The country also carries significant debt obligations to Qatar, the International Monetary Fund (IMF), and various private organizations.