Pakistan has repaid a $2 billion loan to the United Arab Emirates after the maturity of SAFE deposits held with the State Bank of Pakistan. The central bank confirmed that the amount was returned on time, showing the country’s commitment to meeting its financial obligations.
SAFE deposits are funds placed by friendly countries to help support foreign exchange reserves. In recent years, Pakistan has relied on such deposits from allies like the UAE and Saudi Arabia to stabilize its economy. These deposits play an important role in maintaining reserve levels, which are closely watched by global financial institutions.
The repayment comes at a time when Pakistan is working to improve its economic image and restore investor confidence. Meeting external commitments on time sends a positive signal to lenders, including the International Monetary Fund, which has been supporting Pakistan through financial programs.
However, the repayment may also put short-term pressure on foreign exchange reserves, depending on inflows and future support from partner countries. Experts believe that continued cooperation with friendly nations will remain important for economic stability.
So far, there has been no official update on whether the UAE will renew the deposit or offer fresh financial support.
